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If realtors and money-lenders are involved, it is certain that "sell and rent back" deals are going to hurt the homeowner. Until a few years ago, many realtors where honest people who made good livings from honest dealings with buyers and sellers of homes. However, once caught up in the enormous inflationary booms in real estate over the past two decades, too many realtors became obsessed by overwhelming greed. The game became make all you can out of the suckers with every kind of false promise and mortgage come-ons.

Realtors played a villainous role in making the average house much too expensive for the American family, and their financial manipulations hid the future dangers. Homes that sold for $70,000 two decades ago now typically are priced at $300,000. It is even more shamefully inflated by greedy realtors in the most desirable areas of big cities, such as New York, Los Angeles, Chicago and San Francisco.

Now, after they've pushed and pushed homeowners until the real estate bubble burst, realtors and fast-buck lenders have come up with another crooked deal to make even more blood money from the hapless homeowner. When the family was talked into buying that $300,000 home five years ago, the parents were making enough income to pay the huge mortgage. But, when the economy dipped and family income dropped with it, the shadow of foreclosure hit millions of people across the country.

Now, the creative realtor and lender came up with another rip-off scheme. It goes something like, "Hey, I'm real sorry you're behind in your mortgage payments and the bank is threatening to kick you out. But, I'm on your side. I can help you and your dear family stay right there in your house."

The homeowner's worries seem to fade away at this last-minute salvation from the concerned citizen. When the offer to buy is $50,000 below market value, the deal isn't so attractive. The kicker comes back, "But, hey, it's the only way you and your loved ones can avoid being tossed out.

"You sell the house to me, and all you have to do from now on is to pay a couple thousand bucks a month in rent. That's not much for this beautiful house, considering all the legal fees, expense of moving and searching for a new place for your family to live. Look, take my offer. I'm really doing you a big, big favor taking over your house."

When facing foreclosure, look for any other way but "sell and rent back" offers to save the ownership of your home.

Learn more about this author, Ted Sherman.
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