Renter Sells Owner's House

[billjames]

Thought I'd share a horror story with you.

John's house had been on the market for three months and he hadn't gotten a single offer to purchase. Finally, one day Henry drove up and offered John a long-term rental agreement. Henry was a traveling salesman and needed to move to this town to be centrally located within his sales area. Henry was very nicely dressed, drove a respectable car and talked very professionally.

Because Henry was on the road so much of the time, he wanted to simplify the move for his family by paying John a security deposit and six months' advance rent. He also wanted to sign a three-year rental agreement. Needless to say John was excited. He didn't really want to sell and a three-year rental agreement from such a professional was a dream come true. Henry signed the agreement, advanced the money and John headed to the bank. That is when the real estate horror story began.

As soon as Henry gained control of the house, he placed a for-sale ad in the paper, advertising the home for an unbelievably low price. In fact the price was so low Henry received hundreds of calls. Henry scheduled dozens of showings.

Each time, he would give the person a real sob story about how he had lost his wife and family in an accident the previous year. Henry told everyone that he was being forced to give up thousands of dollars of equity in order to pay bills resulting from the accident. He then convinced the buyer to give him a $2,000 earnest money deposit to hold the house. The buyer's greedy nature told him he would never find another deal like this and he gladly forked over the $2,000.

In fact, 30 buyers put up $2,000 each. With $60,000 in cash, Henry split, leaving behind 30 contracts for sale on John's house. Can you image the horrible situation John faced when the buyers' attorneys tracked him down? What do you do? I'm sure the title companies are having fun with this one. How could you stop this from happening to you?

[AugustaREGroup]

Wow, if scam artists like Henry spent half as much effort making a real living they would be rich anyways!

[scottiegrace]

That is why buyers should always deal with real estate agents. It dosen't cost them anything if they are looking at MLS listed homes and they are protected. I think I will print this story off to show people.

[pinxer]

Henry's my idol. jk. This is funny though,.. I don't sympathize with anyone. Greedy consumers wanting a cheap house vs Henry. Who would you fully blame.

[AnnAnderson1015]

Wow, if scam artists like Henry spent half as much effort making a real living they would be rich anyways!

We had a similar thing happened in our area. I agreed. If these people use their brains to make a real living, they would be very successful. The guy was selling hard money loans to people with poor credit and charging $1000-2000 "retainer fee", within a short period of time he had a lot of "clients". I was amazed at how good he was with people. Excellent salesman, too bad he was a crook.

[Ryocheck]

Maybe these people like Henry can't become Realtors because of past felonies and licensing. Not that getting a license is all that hard but if you were already a criminal before you learned you could be a successful salesman that fact could be somewhat limiting. Creative idea though. I would hate to be John.