Avoid scams by choosing reputable real estate investors. There are many scam artists out there that are taking advantage of the homeowners living in financial distress.
Texas House Buyers: You may be under the stress of having to sell your house to get out from under a heavy mortgage obligation or to avoid foreclosure. Perhaps you’ve found a great job but it’s in a different state and the time is drawing near for you to move with no hopes of finding a buyer. Whatever the reason you must sell your house in a hurry, there are honest and very helpful real estate investors that are glad to help you. There’s something in the transaction that will benefit you both.
With a nationwide trend of difficulty in any circumstance comes the advent of scam businesses that want to jump on the opportunity to separate you from your money and your property. The worst part of this is the situation you may be facing, the stress your entire family is under, and their ability to take advantage of you in your weakest and most vulnerable moments.
Many people are quite happy to hear from an ‘investor’ who wants to buy their house. The ads come in the mail, they come by email, and they may visit your home and knock on the door, just as friendly and accommodating as you might imagine a con artist to be. They offer to ‘help’ you get out of your financial difficulty by taking the home off your hands or making some other slick arrangement.
Sad Truth About Real Estate Scams
The sad truth about many of these scams is that they look good to you and give you a big sigh of relief, but you may be asking for even more trouble than you already have. Some popular scams are called contract bait and switch, which involves the buyer giving you a verbal version of a contract that you can easily live with. He comes back in a few days with a ‘formal, legal version’ which has been altered.
Another involves the investor getting the deed to your home. He allows you to stay in the home, which sounds good, and pay the mortgage to him. He isn’t paying your mortgage with the money, however, and may be taking loans against the property, or uses your equity to buy himself some things, leaving you with the mortgage unpaid and he with the deed.
Another scam is the Liberian FSBO, or Nigerian Scam. Someone out of the country offers to buy your house for cash. All he needs is the account number for your bank so he can ‘transfer’ your funds. Guess what comes next?