This is what gives Rent-to-Own (a.k.a. Lease-Options) a bad name.

The British Columbia real estate regulator issued a rare ‘Emergency Suspension’ to a BC realtor and his company. Briefly, the realtor allegedly looked for homeowners in foreclosure. Then he would buy the properties from them at less than market value and rent them back under a Rent-to-Own scheme. The homeowners were always unrepresented by realtors or lawyers.

Here’s the kicker; their rent payments were double their mortgage payments. Of course, if the homeowners could not make the mortgage payment, they could never consistently make a rent payment that was double the mortgage payment! Once they couldn’t make a payment, the realtor would evict them.

Here’s what the regulator said: Continue reading →