You may be one of the unfortunate home owners who finds themselves in a tight financial place, unable to afford your house payment and tempted to respond to those We Buy Houses yard signs.
There are other reasons you may need to sell fast as well; losing a job, having to relocate, divorce and more. But should you need to sell quickly, you should be careful of scammers who might take advantage of your situation. That doesn’t mean that all “We Buy Houses” signs scams. You should just be aware that there are those that would like to take advantage of your situation. Here’s a few scams you be aware of if you are going to respond to a “We Buy Houses” sign.
We Buy Houses Equity Skimming:
The first to watch out for in the “we buy houses” scams is called equity skimming
This is where the “buyer” wants you to turn the deed over to them. Then you make your house payments to them rather than to the lender. You might even be asked to move out of the house so they can rent it to make some income.
Along with getting a payment from you or the renter they might take any equity out of the house using an equity loan. They could also resell the house but never pay off the first mortgage.
Somewhere along the way though the equity is gone along with them and you end up holding the bill; no equity, your house foreclosed and a negative credit rating.
WE Buy Houses Bait and Switch:
This scam plays on peoples trusting nature.
In most cases the buyer inspects your house and will make some offer verbally that you agree to. He’ll come back with what he will say is just the written copy of what you talked about with no changes counting on your to just skim it and sign it.
Before you get to closing they’ll come back with what they say are just minor changes; nothing affecting the original contract. But you’ll find that what you signed won’t resemble what you signed. By then it’s too late and could take months to rectify.
How To Protect Yourself from We Buy Houses Scams:
- Be sure to read the contract: Get it all in writing and read the documents and changes thoroughly. If you don’t understand something ask the person buying or the best thing is to have your lawyer review it.
- Do a through check on the buyer: You can check with the BBB (Better Business Bureau), Consumer Fraud Unit or State Attorney General’s office to see if they’re on the up and up. Get their references.
- Always be willing to walk away: These can be hard times and when you have a buyer in hand you just want it to be over. But don’t skip these tips to protect yourself. The problems of proceeding with a bad deal won’t be worth it.
- Always work with Pros: There are those of us in the “We Buy Houses” business that really do want to help you to avoid foreclosure and avoid bankruptcy. We have quite a few legitimate ways to accomplish a fast sale for cash. Look for businesses with a good history in your area; those concerned more about keeping their reputation than taking advantage of you.
- NEVER give anyone your banking info or mail money; EVER! Should you do that, you’ll never see the money again.
In Conclusion:
Remember that legitimate buyers are looking to make a fair profit just like you are trying to sell at a fair price. The “we buy houses” folks may be your last resort to avoid foreclosure. You can usually expect offers in the range of $.60 to $.75 cents on the dollar less whatever repairs might be needed to the property. There are many legitimate buyers that have cash to help you get out from under your financial difficulty. Just be careful to avoid the scams.
Need cash for your home? I hope you’ll take the time to contact me for an offer. I have access to a number of buyers that would love to make an offer on your home today. So don’t wait… Call or email me now and avoid the scams that could be waiting from the “We Buy Houses” buyers
