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EVER THINK ABOUT BUYING A HOUSE "low down payment, no credit, owner will carry contract"

We all dream of owning our own home, having a place for our kids to play, fix up and decorate any way we would like. A place to garden at the end of a work day, a yard for your dog to play in. Even just something as simple as a place to keep a washer and drier. If yo have bad credit or as in my case no established credit you might be tempted to by a home on contract. If this is the best option for you do your homework on the seller and spent a little money haveing an attorney go over the contrat before you sign it.
This is my story of the Purchase of a house on contract and the now over 18 month effort to get economic justice from the seller. Kip Schoning is just one of many people who do this. Hopefully most are honest investors that deal truthfully with the people they are selling their real-estate to. If you are considering buying for Mr Schoning I recommend you RUN the opposite direction as fast as you can!

If you are considering buying a home on contract go to the court house and check the sellers records. If you are finding tax liens, default notices, foreclosure sales or litigation between the seller and from buyer. RUN! Remember if the seller lives in another county it would probably be a good ideal to check the records in BOTH counties.

Ask the seller for his information and run a credit check on him. If he will not do this then he clearly has something to hide.

Consider posting a request for information about the buyer on the internet.

Have an attorney look at your contract to insure it protects you from foreclosure. If it does not pay him to rewrite it. If the seller is honest he should not object to you trying to protect yourself.

Don't be trusting and get lied too, like I did. Read my story below. You do not want this to happen you your family!

I have been dealing with Kip Schoning in a real estate civil matter that should have been resolved in a few days for the past 18 months. I nearly lost my home to foreclosure because of Mr Schoning's actions. II hope to find other with similar stories, especially involving real estate and legal system dealings with Mr Schoning.

There is another article here on IMC about slum lords that mentions Mr Schoning several times.

Mr Schoning is a property speculator. He buys and then rents "as is" or resells property on contract. Per county records hundreds of properties have been bought and sold by Mr Schoning. He is almost constantly in default on one property or another. He is well know in Corvallis as a slum lord that preys on students and low income renters. Mr Schoning lives in an up scale neighborhood, owns several expensive car, travels and lives a pretty nice life. He thinks of himself as a skilled businessman and show no concern for the people he scams to support his extravagant lifestyle.


In May of 2004 I asked Mr Schoning to allow me to refinance the house I purchased from him on contract without paying the pre payment penalty. He refused. Interestingly, he was ALREADY in default on his senior loan at the time. My refinancing could have ended his default. He chose instead to continue to take my money and divert it for his other needs.

I first learned of the default in September 2004 when I got a letter notifying me that my house was up for auction. Apparently, Mr Schoning had not made a payment on his loan for some time, in addition, I learned his contract stated that he was prohibited from resell the property he sold to me.

I was completely willing to refinance and pay everything including Mr Schoning's default and the senior seller legal fees. Mr Schoing did not respond, which over time I have learned is how he deals with the unpleasant consequences of his actions. His attorney refused to deal with me directly so I as forced to retain an attorney.

I had financing ready to go by early October. My attorney vigorously pursued a resolution. Mr Schoning and his attorney stalled at ever possible opportunity. EVERY legal response came at 5pm on the last possible date. Every possible maneuver to gain extensions was used. He finally signed the Mortgage papers in January 2005. The public auction to sell MY home was less than 18 hours away. The balance on the mortgage was about $38.000. Because of legal fees and interest (on two loans) I paid over $50,000 to keep my house. Plus and additional 23,000 to pay off ZERO interest HUD loans that could not be refinanced if the new loan was for $ than the original loan. As I had not option but to refinance for a higher amount I had to borrow enough to pay the HUD loans as well. This $73,000 does not include MY legal fees.

Now an entire year has gone by. There is still over $5,000 of my BORROWED money sitting in escrow awaiting only Mr Schoning signature for release. Again, Mr Schoning delays or ignores any attempts to settle. I offered him a VERY reasonable compromise on Aug 8, 2005 and again on Jan 31, 2006 at his request . His way of refusing, as usual, was to simply not respond. My attorney estimates that my financial loss over length of my new loan will be over three times what I would have settled for. Mean while my attorney fees continue to grow.

Where is Mr Schoning in all this? I can't even guess. He will not sign to release the money in escrow, though he has not made any legal claim on it. He does not respond to mail and has returned just one of my phone calls . He ignores phone calls from both my attorney and the arbitrator assigned to the case. He did not show up for a court dated in October that was scheduled months in advance. He actually told the Judge he "forgot". Arbitration was re scheduled from Jan 9 to Jan 29th. Not surprisingly Mr Schoning has still not paid his half of the arbitration fee. I will likely not recover my share, $250.00.

Our most recent arbitration re scheduled for Feb 8, 2006 was postponed at Mr Schoning's request. Apparently he is to busy to be available on a day that has bee scheduled science early January. He did not show up to court in October because he "forgot, yet the court has allowed the arbitration to be rescheduled for the fourth time now

Mean while I see his ads in the newspaper "wanted any real estate, cash in 48 hours, call Kip at 541 758-0566 so I guess it is just "business as usual" for Mr Schoning.

I am thinking he just expects me to give up and go away. In case he has reason to be reading this PIGS WILL GROW WINGS BEFORE I GIVE UP ON THIS!

I did hear from Mr Schoning last week. I think it was in response to people calling him about my need for the money he is holding in escrow that I need desperately to save three dogs for a pupymill in MO. Pleasant as ever he asked me what it would take to resolve this out of court. I sent him my offer and asked he contact me by Thursday. I was very surprised when I came home to find a message on my answering machine. Well no response to any of the messages I left for the next three days, in fact my calls go directly yo voice mail! Today I learned that at the very same time he was "trying to work things out" he was writing to the court to request ANOTHER postponement of the Arbitration.

I hope you are interested in this story, please forward it to anyone else who might be. I am willing to bet that there are many more stories to tell.

People need to warned. Please tell your story here or contact me.
Don't be fooled 06.Feb.2006 13:13


You will never own your home. You rent your land from the govt. What happens if you don't pay your rent (taxes)? They seize it from you. You also cannot do "anything you want" as you have to get permission from daddy (govt.) to do pretty much anything. Not trying to burst your bubble, just don't be fooled by the propaganda. This govt. owns you & I.

Don't be silly 06.Feb.2006 17:53

the beancounter

If you miss a rent payment, you are out within 30 days. If you miss your property taxes, you have at least 3 years to fix it. And don't kid yourself, J, you are paying those property taxes - and then some - when you rent.

Property taxes are almost negligible compared to the mortgage payments most people make. For those people, however, once they build some equity and get established, they have what amounts to a rental where the monthly payment is fixed and no one can increase it. (That isn't true, however, with adustable rate mortgages that were so popular last year.)

As for the onerous regulations of local government, don't kid yourself, J, you are subject to and paying for those when you rent - the difference is that as a home-owner you can make repairs on your own time and according to your taste. Yes, sometimes home-owners get stuck with some large fees when their residences are annexed into a sewer or water district (or municipality that includes sewer or water), but that almost always means that their properties increase in value enough to make financing of the assessment pretty easy.

And if J finds the regulations imposed on home owners to be irksome -- just try living with some of the rules that are imposed on many renters by arbitrary and authoritarian-minded property owners!

There are plus and minus aspects to renting versus owning or buying - on contract or with a mortgage - but that is no reason to exagerrate the problems of home ownership as though there were no difference between the class of home-owners and the class of renters. For most working families, if they can manage it and find what they want in an area that they like, home ownership is definitely a leg up over renting.

Of course, there is an enormous difference between someone who is buying on contract and someone who owns a residence outright. As indicated, it's a good idea to have a trust-worthy attorney look over any contract involving anything as important as your home. But many many people have been well satisfied with contracts to buy and have bought their homes that way over a period of years, ultimately owning them outright.

J appears to have bought into some 'tax revolt' rhetoric. But it could be worse - A. M. Opgenorth appears to have bought into a con.

Good advice on checking people out and being on the look-out for cons.

endless delays 10.Mar.2006 15:47

AM Opgenorth

More legal maneuvers! Schoning did bother to show up for court, I understand he told the judge he "forgot". Now he is delaying the mediation. If he is such a "great guy" and did not do anything wrong why is he avoiding his day in court to set the record straight?

read other articles 24.Jun.2006 11:36

Am Opgenorth aggiemaeQquik.com

Please type "Schoning" into the indy search to find other articles about Kip. We now have three families working together and providing each other support. If you have been ripped-off by Kip and want help in getting you money back or if you are currently involved in litigation with him please join us. IT does not matter if the are suing Kip of he is after you. Write a post in the article with the picture of my house or contact me privately my email included in all my articles.

Don't let the bastard win! Write you own story, get the word out!