Family led to believe they were in fact purchasing a home, not renting it, only to be evicted when they fell slightly behind on payments.
A Missouri Family “bought” a home under a “contract for deed” and were told repeatedly by the “sellers” that they then “owned” the home and were building equity in it, among other things. They were told that it was just like any other purchase of a home and they were not renting it (and were making higher monthly payments than renting it would have cost). When the family got slightly behind on payments, the “seller” sought to evict them. However, the sellers failed to tell the Family that under a contract for deed, such a transaction comes with serious risks to the “buyer”; among them that they would not have any equity in the house until it is fully paid off, and, that if they ever got late on a payment, they could be evicted and lose all the money they had paid towards the house. The Family was never told of these risks and certainly did not understand them.
The Family contacted a Missouri Consumer Attorney who filed a case under the Missouri Merchandising Practices Act.
This Family would not have had a case under SB 5.