Buy not many people can do this and it requires very good book keeping.

People should stop applying sale of goods theories to it.    

The people that run these companies usually come from an "investment banking", real estate, or construction background.

How do they treat people that are close to them?

That is dissapointing that they did not vet the people they would be spending hours and hours touring properties.

While none of us will be getting our money back he can live well selling off the remaining assets as long as they don't shut him down.

I've done this with my properties because I'm well known in my small town and don't want people to know what I own.LEGAL PROTECTION: By placing your assets in an LLC, you are legally separating them from your personal assets.

The problem is mainly a concern for people with a net worth or reasonable income. 

Many people have had a great experience with home warranties, myself included.

I'm a retired engineer and have been successfully using income from these houses to support my retirement without dipping into retirement savings.I'm transitioning my business from rentals to a franchise and would consider selling one of my houses (5 br/4 ba - the other houses my son while he's still attending).