Real Estate Investing, Protecting Your Assets, Upstate SC, Greenville SC

As happens, I heard from another potential client about a problem they had. They were under a Lease Purchase with an owner of a property, they did not have representation that was looking out for them. This couple was notified by the Sheriffs Department with a Foreclosure notice that they had to vacate the property. They had put a down payment and had never been late with a payment. They wanted to know how can this happen? Well quite simply the home owner did not pay his mortgage. How can you protect yourself from the same fate? Here are a few tips,

1. Representation: Be sure you are represented by a professional that understands how a Lease Option or Rent to Own program works. Also be sure they know the proper documentation and recording procedures.

2. The Contract: If the contract is written correctly this will not happen. Be sure the contract includes payment arrangements. The best protection is to have your representative set it up so the Mortgage Company is paid first and the difference is paid to the owner. This may cost you a few dollars more monthly for your representative to manage it but well worth it.

3. Record Keeping: Be sure to get receipts and keep copies of each one. You only have to keep up with 12 per year however claiming you paid each month and proving it are different things.

4. Verification: In the body of the contract require monthly or quarterly Mortgage Statements to verify it has been paid and no refinance has taken place. This can save you time if you have to start an action against the homeowner. You do not want to find out 8 months down the road that the owner refinanced and has moved his mortgage to another company and not paid it.

I hope these items help. The main thing is to protect your investment. If you have additional questions or need some suggestions on representation drop me a line at agentdadams@gmail.com or just give me a call at 864-201-3960 Thanks

Greenville SC Real Estate