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In Default in Oregon, don’t get conned by the “We will buy your home and lease option it back to you scam”

Why do I say this is a scam? In some states the banks won't allow you to purchase the home at a discount with the intent of selling it back to the person in default. It is mortgage fraud!

The second reason is, even if it isn't written into the deed that they buyer can't sell it back to you, the contract they have with you is they buy the property from the bank for usually $20,000-$30,000 less than you own and then lease option it back to you for ONE YEAR and one year only. Then you agree to buy it back from them at the end of the year for $10,000 more than you owed before, and pay for your closing costs as well as theirs. This can total another $12,000 and so you are buying your property back for up to $22,000 more than you owed one year ago. You are also paying them a rent check every month, usually more than the market rent for an area, taking even more money out of your pocket.

So, why are they so willing to "HELP" you? Simple, they need your help to buy the property at a discounted price from the bank, and need your signatures on a lot of documents in order to even talk to the bank about your situation. The second reason is it is for a one year lease and not for any longer, is because they know that 98% of home owners can't get their credit back in order in less than one year. So these investors now get to keep the house and will sell it for whatever it is really worth.... even if that amount is $200,000 more than you owed on it when you sold it to them.

They don't want you to get the house back. They don't want you to recover. They want to sell it, make a large profit, and head on to the next person with the promise of them getting to keep their home. So don't get fooled by the scams that promise if they buy your home you will get to keep it, you won't!

Respect Realty LLC (Expect More)


At Respect Realty, LLC our agents believe in 100% dedication to client satisfaction.  We specialize in property and land acquisition around the Portland Metro and Vancouver, WA area. We delight in working with first time home buyers and sellers to guide them from start to finish. Our doors are always open and we are always happy to assist you with your real estate questions.


Reach out today, we look forward to talking with you!


Todd Clark and Seraina Aguayo (Owners of Respect Realty)

Respect Realty LLC (Expect More)



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Comment balloon 7 commentsRespect Realty LLC • November 26 2007 01:27PM


Todd this post is a very good "heads up" for folks. Homeowners under the stress of foreclosure are just ripe for the pickin' for the fraudsters. They really need to be careful and seek legal advice before signing anything. These scammers really piss me off!
Posted by Bryant Tutas, Selling Florida one home at a time (Tutas Towne Realty, Inc and Garden Views Realty, LLC) over 12 years ago

Howdy Todd

I take my hat off to you for giving folks a heads up to what some are doing out there. And for picking just the right picture to put with it. Keep up to good work.

I have never liked pepole that look for ways to make money off of folks that are having hard times.

Have a good one

Posted by Dale Baker, New Hampshire Relocation Real Estate Information (Baker Energy Audits and Commercial Properties Inspections) over 12 years ago


First off, great picture - it really depicts who these animals are (OK, the pun was intended, eve if it's not funny).


As a REALTOR, bound by a Code of Ethics, I believe in my heart that we are the best chance a homeowner has of going through a legitimate transaction and maintaining their dignity.

Now Have a Blessed Day,

John Occhi, Hemet REALTOR®
Mission Grove Realty

Posted by John Occhi, SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate (Mason Real Estate) over 12 years ago
Todd- Here there are these scammers who after you sign over your house to them and pay them rent, they in turn, never make the mortgage payment and it defaults anyways! We have these guys approach our desperate sellers almost daily! Katerina
Posted by Katerina Gasset, Get It Done For Me Virtual Services (Get It Done For Me Virtual Services ) over 12 years ago

Bryant - Those fraudsters are everywhere and think what they are doing is legal because they paid $2500 to go to this seminar they saw on TV a midnight.

Dale - I couldn't find pictures of a jackass holding a sign or I would have used that - lol

John - I'm thinking I should have used a sheep in wolves clothing now. But, I still like my idea of a jackass!

Katerina - This is the reason that I require any of my sellers to use a escrow company to make sure payments are paid to the mortgage and taxes first!


Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) over 12 years ago
ooooh it is so true Todd. I've seen this before and people will ask me if I think its a good idea for them. I don't usually recommend it to them. I try to explain to them that it is wishful thinking if they think they can get their credit clean that quick. Especially if they are facing foreclosure. If that is the case they are typically more than 120 days behind on their mortgage and will most likely need 2 years to get their credit recovered. Some lenders only look 12 months back so at minimum I'd tell them to take an 18 month contract. I actually have a client right now that is in a similar situation. They are trying to refinance a lease option and they are working on their credit but I don't think they are going to get it done soon enough and will have lost a good amount of money.
Posted by Rick Grand (nowhere) over 12 years ago
Rick - I'm sorry your client didn't call you before they got into that situation. You could have saved them then, but now they are just going to lose their home and thousands of dollars.
Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) over 12 years ago

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