How To Spot A Foreclosure Con Artist
The Headline SHOULD Read:
We buy houses! If you want to sell your house thousands below market
value! We’ll make a killing!
But instead it says things like:
We can save your credit!
We pay cash!
We buy your home and rent it back to you!
My company specializes in helping people just like you!
Don’t let the bank take your home; we’ll pay you for it!
Most advertisers with ads like these are bottom feeders. They try to
profit from your misfortune. If they really cared about you they would
help you for free or maybe charge you gas money. Now I’m not opposed to
capitalism or free enterprise but I am opposed to preying on people’s
misfortunes. Let’s look at some of the above examples:
We can save your credit (for a small fee).
Saving your credit is a questionable statement. In all likelihood your
credit is severely burned already. The real deal here is that you
actually pay them to take your house. They convince you that by selling
you will be spared the foreclosure and your credit will be spared a hit.
Some of that is possible true. If the house is not already in
foreclosure, you will be spared that hit but there is a bigger picture.
If you have equity (they won’t buy the house unless there is equity) you
lose, they win. They win ALL that equity and you paid them to steal from
you.
We’ll pay you cash (to sign over the house).
Same as #1 except that you get a little cash instead of paying them some
cash. Still, you are losing on the equity in the house. I watched an
elderly woman lose all the equity in her house for a few thousand dollars
up front. She was scared into thinking she would be a homeless bag lady.
With her equity she could have bought a small older house for cash.
We buy your home and rent it back to you!
What a deal! They buy your home for pennies on the dollar and you sign a
lease to give the monthly payment amount. Most of these guys buy your
home and get financing to cover the cost. The payments are then made by
you on your own house. Many times they will flip the house with a
guaranteed renter, you.
My company specializes in helping people just like you!
It should read “My company specializes in helping separate people just
like you from their money!” That’s what they do and they do it well.
My best advice is the same advice I give to senior citizens all the time.
Don’t trust anyone that contacts you first. Only consider trust if you
initiated the contact. That includes the mail, the phone, email and
doorknockers. Ask yourself, why me and how did they find me? Bottom
feeder!
Don’t let the bank take your home; we will sell it or we’ll pay
you for it!
This one is unbelievable. These are usually unethical real estate agents.
They have you sign a contract listing the house for a set period of time
and after which the agent can buy your house at a discounted price. They
never really try and sell the house and then they will convince you that
the lack of buyer interest shows the house won’t sell for the asking
price. Your only option is to take their discounted price.
Rest assured, they already have a buyer and will flip the house as soon
as the U-haul pulls away. Always use a local real estate agent and
preferably someone that a friend or neighbor has used before.
Remember that YOU are the only person that has YOUR best interests at
heart. Think! Be cautious! Take your time and do your research!
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