- This topic has 4 replies, 5 voices, and was last updated 9 years, 2 months ago by Anonymous.
- May 6, 2011 at 12:25 pm #207955AnonymousInactive
for cash? In this market, this seems a bit too good to be true. Are these legitimate business people or is it a scam?
- May 11, 2011 at 2:34 am #271993Mwiggins013104Participant
Yes, but they offer substantially less than the home might bring otherwise. I’ve heard as much as 40% under comparables. So if you don’t have substantial equity it’s not worth it unless you just want to dump and run.
- May 14, 2011 at 5:43 pm #275785Phyllis RochaMember
Its not a scam in the sense that they aren’t going to take your money and run. But it is a bit unfair because they take advantage of your desperation. They will pay anywhere from 20% to 40% less than the house is really worth. They then list the house for its real value and wait for it to sell.
Typically, these deals aren’t worth it. If you don’t have enough equity in the home, the bank will reject the sale because the purchase price offered won’t be enough to pay off the mortgage. if you have enough equity to get away with selling the house this cheap, you can sell it almost as fast by simply listing the house on the market (yes, even in this market) with a really low price.
The only time you should use these companies is if you are facing immediate foreclosure (like within a week or less) and they are willing to pay enough for the house to stop the foreclosure. but even in this case you are getting ripped off because they are paying you so much less than its worth.
- May 17, 2011 at 3:15 am #278191Bart LiddellMember
It is usually people trying to find desperate sellers. They will put your house under contract, (giving them the OPTION to buy the house well below market value), then they will try to find someone to buy it from them a bit more. If they find someone, they sell the house and pay you at the same time, making a quick few thousand dollars. If you are desperate, it may work for you, but have a lawyer review all the documents.
- May 17, 2011 at 6:52 am #278634AnonymousInactive
I tried to do that instead of just letting my condo go but those places offer 20-30% below market value of your home which you will end up owing the difference.
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