We Buy Houses Scam

The Real Estate Dictionary topic of the day is, the increase in companies saying that they will buy houses. These are known as We Buy Houses Scam. We Buy Houses Scam is conducted with less then transparency. The Real Estate Dictionary feels this is a disgusting scam that preys on the weaknesses of peoples financial hardships. This scam uses many tactics to rip people off.

The Real Estate Dictionary has identified many methods they use. The first method they will use is the sign over responsibility contract. We Buy Houses Scam preys on people who are in threat of foreclosure. They will get the owner to sign over the rights to the house with a option to buy. They will then find a renter and hope the market recovers and try to find a buyer. If they do not find a buyer they turn back over the responsibility to the owner and they have profited off of rent money and then the owner still loses the house.

The second method The Real Estate Dictionary has identified is offering to buy the house for the price of pennies on the dollar. This is done through a short sale. A short sale is not a bad thing or a scam until the We Buy Houses businesses utilize it. They will work out a deal to get the home for pennies on the dollars with the approval of the current owner. They will then lie to the current owner and say to them you take on the difference in debt and we will reimburse you. Many times the reimbursement never occurs.

The Real Estate Dictionary has created a scenario in which the scam may be used. An example of We Buy Houses Scam goes as follows: A home owner is getting ready to be foreclosed on. The total outstanding loan amount is $150,000. The We Buy Houses Scam companies will convince the current owner to sell their home to them for $100,000 dollars and the owner and the bank agrees. In this case the bank only agrees to $120,000. The scam company convinces the owner to make a debt repayment plan to cover the difference. So the bank absorbs or loses $30,000 and the owner absorbs $20,000 in debt with the promise to be reimbursed by the scam company. The We Buy Houses Scam company gets the home for $100,000 and the home owner still goes bankrupt and their credit gets destroyed because they did not do as promised to the owner.

The Real Estate Dictionary has released this post in order to teach you to be very careful who you sell your home to. Yes these companies will buy your home but most likely yes you will be the one losing in the end.realestate-encyclopedia.blogspot.com