What is not legal in NJ is any form of required prepayment in excess of 1.5 months security.

If you loose the bid, your cc is not charged. 

This is the only scenario that clearly benefits the original owner but the benefit is typically only some high rent amount.In summary, the downside for the current owner is so much greater (loosing out to huge appreciation) and more likely to happen (historically the appreciation has been outstanding) than the upside (that the tenant does not exercise the option and the owner has been able to collect higher rent than a traditional rental).I did know a couple of tenants in San Diego that had a lease options. 

If the prices are rising beyond the rate of rent increases it is for two reasons either too many novice investors are in the market and overpaying or investors have entered the market looking to park excess cash.

The FNMA deed of trust (Section 22) has a blank before the % that gets filled in:Trustee shall apply the proceeds of the sale in the following order: (a) to all expenses of the sale, including, but not limited to, Trustee’s fees of ____________% of the gross sale price and reasonable attorneys’ fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 

One thing this time around compared to last cycle is Vegas was ground zero for all the loose loans and speculation last cycle.

Proof of funds is needed and many times you will loose your deposit if you can not close 

But when we turned on the water on the kitchen sink they had not hooked it up right, the pipe was loose and water got all over the floor and ran down into the basement through the drain lol. 

It's a loose loose anytime an out of state investor buys a property in East Cleveland.

Do you just use a “high interest” (I use that term loosely..) savings account?