For Sale by Owner Horror Story

I want to pass along this real-life drama which just unfolded. My buyer put an offer on a foreclosure in the $400,000 range. It was still occupied by the tenant, who relayed his experience to us. He paid to the owner a sizable down payment.

He was in the home for several months and apparently made monthly installments to the owner, in good faith. The owner, possibly a straw buyer was unable to, or neglected to make the payments on his mortgage, hence the home went into foreclosure.

The buyer lost all of his investment, plus all his installments. Once the sale was firm, and approved by the court, the tenant was given notice. My buyer, being concerned about the welfare of the tenant, and the home, helped him move his belongings out, as he apparently had no other means. He was very appreciative of that. About three days later, my buyer who was in touch with the tenants brother, was informed that the tenant, an otherwise healthy middle aged man, was no longer alive. No other explanation was given.

Now this is really a horrible story, and one that tugs at the heartstrings of just about anyone. I can just imagine what that poor guy went through, in his last months of life. I would hate to have this happen to anyone else, hence I am relating this experience to educate as to just one of the very serious pitfalls that can befall those who least can afford it.