Trouble Hits 200+ Would-Be NC Homebuyers As State Investigates Now-Defunct "Rent To Own" Outfit Suspected Of Pocketing Rents, Stiffing Lenders

In Raleigh, North Carolina, WTVD-TV Channel 11 reports:

• [Sherry] Williams moved into the Raleigh home in March. Not only is it her family's home, but it's their livelihood as she runs a licensed day care out of it. She found the home through a company called Saving Carolina. "We don't have perfect credit. This was a program that helped people. We thought it was a great opportunity to own a house," said Williams.

• Williams says it was rent to own with 100 percent owner financing available. She gave Saving Carolina $3,000 down payment and her monthly payments were $1,650 a month, which each month she says she sent to Saving Carolina. "They were handling the mortgage for the homeowner and we would send the money to them and they would send it directly where it needed to go," she explained.

• Saving Carolina acted as the middle man. They found homeowners who wanted to rent out their home. In turn, Saving Carolina would find renters for those homes, and offer them as rent to own. Williams thought all was going well until after 6 months of making her monthly payments to Saving Carolina, she got a shocking letter in the mail from the bank. "The house was in jeopardy of being foreclosed because it was a few months behind and the owner needed to get in touch with the bank," she recalled.

• Williams called the owner of the home. She says he told her he doesn't have the payments as Saving Carolina was supposed to be making them. So she called Saving Carolina, "have no idea where they are. The numbers have been disconnected. We're just kind of locked in - just praying the sheriff doesn't come and say you guys need to get out," said Williams. Williams isn't alone.

• "I think it was 282 families that this has affected. I personally have seen 50 families," a former worker at Saving Carolina told ABC11. She asked not to be identified.(1) [...] Another man who also worked for Saving Carolina and also didn't want to be identified says Saving Carolina made their money by collecting rent to own payments, but didn't always send them into the mortgage company.

For more, see Troubleshooter: Rent to own.

(1) Reportedly, besides ABC11 looking into Saving Carolina, two former workers along with Williams say an investigator with the North Carolina Commissioner of Banks has interviewed them. rent to own lease purchase option scams yellowstone