Posts Tagged ‘real estate scams’

Don’t Get Trapped By We Buy Houses Scams

Friday, April 17th, 2009

Foreclosures are on the rise and people are losing their homes all over the United States and that’s given rise to the number of We Buy Houses signs that are getting posted around cities. These companies are trying to buy homes quickly, because they’re cheap right now. Which ends up being a big bonus for those who invest in real estate.

Never think you’re out of options, just because you’re about to be foreclosed on. You need to be on the look for people trying to take advantage of your situation. Scammers are drawn to areas that make lots of money quickly and the foreclosure buying market is just that. There’s always someone out there looking to take advantage of those in need of help.

There are plenty of reasons why you might have to sell your home quickly and the worst thing you can do is panic. Sure it’s hard to find buyers noadays but that’s no reason to put aside all logic and practically give your house away. Don’t let buyers know you need to sell quickly, that’s just inviting lowball offers. If you’re facing foreclosure, you might want to consider one of the We Buy Houses services, but make sure to choose one with a good reputation and has been in business for a number of years.

If you find yourself in foreclosure, it’s quite easy for anyone to find out because the records go public. A lot of times you’ll have companies calling you offering foreclosure protection. The We Buy Houses companies make offers for cash and some will claim to be dept and foreclosure specialists who say they can help you negotiate with the bank or mortgage lendor. These so called dept or foreclosure specialists are rarely able to do what they say they can and are usually trying to scam you.

Stay away from any “we buy houses” services you see through TV, mail or phone, these are most often the scammers. If you want to find a legitamte company make sure they are actual real estate professionals. Try to find ones who deal mostly with foreclosures, short sales and probate homes. Call several before choosing one, it’s advisable to compare the similarities and differences between their services and then choose the one that suits you best.

Make sure any deal you sign has all the details spelled out clearly in writing. Read everything over twice, make sure you understand it and even then, have an expert look at it. Some good people to go to are real estate attorneys, who better to explain the ins and outs of all that legal jargan. This way you know you’re interests are being looked out for.

The best thing to do is avoid getting caught in a scam, if you are caught, there’s very little that can be done. These people are unethical, untrustworthy and just plain dishonest. They care nothing for you or your family, they’re only interested in making money. If they can trap you into a bad deal because you didn’t know any better, they’re going to and there’s nothing you can do about it. The courts will more than likely say the deal was legal.

Trust your gut. If there’s something you’re getting a bad feeling about, or you feel you’re being taken advantage of, walk away. Some research into exactly who you’re dealing with and their reputation can help you avoid scams. Work with a quality we buy houses service, not some fly by night scam artist.

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Beware Of We Buy Houses Scams

Friday, April 17th, 2009

Youve seen the signs on the highway, We Buy Houses, fast sale, cash, etc. Real Estate investing has spawned yet another scam niche, only this time theyre not selling a get rich quick scheme, no this time they want your house.

Now before we go any farther, I want to tell you that this article is only referring to unethical or scam companies. There are many legitimate House Buying companies who do good work, without ripping people off.

To explain a scammers business model in a nutshell. They buy houses quickly and for cash. In order to make this work they usually have someone else lined up to resell the house to. That doesnt sound so bad though.

Its how they make their profit which is questionable. Its made from the equity in your house. You see, theyre only willing to pay just enough to get you to sell. They start by coming to see the house, they walk through and talk with you. Theyll try to get you to tell them how much you own on the house, even though its none of their business. They do this to convince you to trust them, that they want to help you.

Make no mistake, theyre in it for themselves, this is their business and they do it by convincing you your house isnt going to sell any other way, that its in bad shape. Youre not going to benefit from this deal.

It gets worse. No only will they expect you to take their offer, depending on how they operate, you might end up not having enough money to pay your outstanding mortgage once you do sell.

The worst companies will try to get you to sign over your deed, you might think your house is sold but its not because you still have a mortgage on it. Now they control your house and youre stuck with a mortgage to pay. Avoid any deal that doesnt involve full cash payment upfront, or through escrow.

If you are thinking of using a We Buy Houses service, be sure to read everything before signing, get all agreements in writing and ask questions about anything you dont understand. If you need help talk to bank, also investigate the company by calling the Better Business Bureau to find out about any complaints by previous customers. Rule #1, dont believe everything they tell you, follow this advice and youll be safer and happier.

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