Comments on: Are These Companies That Write And Say They Can Buy You Home To Stay Out Of Foreclosure Scamming?

By: I Buy And Sell Houses

I Buy And Sell Houses — Sun, 01 Nov 2009 13:09:14 +0000

Scams.
And I say that even though part of my business is sending out cards saying “We Buy Houses For Cash,” etc. Or maybe BECAUSE I send out those cards and know what’s involved.
If you have a lot of equity in your house, legitimate “We Buy Houses” folks can buy your house in as-is condition in 7-14 days. The catch is that the price you’ll receive is less than you could get on the open market. Example: A house that’s in fixed-up condition would sell for $500,000. Assume it needs $10,000 in repairs. The most that I or other “We Buy Houses” companies would pay is roughly $315,000. (The formula is: Maximum Allowable Offer=(After Repair Value * 0.65) – Repair Costs.
In that example, though, the owner would have to have a mortgage of roughly $315,000 or less. Today, many people facing foreclosure have no equity. In fact, many are upside down–they owe more than the house is worth. If someone bought a house for $500,000 and owes $500,000, it doesn’t do any good for someone to offer to buy it for $315,000.
So, can foreclosures be stopped by selling a home? Sure. But the purchase price has to be enough to cover the mortgage, arreages, penalties, interest, legal fees, etc.
The other alternative is a short sale. Let’s say you owe $500,000 but the home is only worth $350,000. You could sell it to an investor for $350,000 if the lender agrees to permit the sale (thereby losing $150,000). That sometimes happens. But it’s not a good deal for a real investor. Why would an investor want to buy a home worth $350,000 for $350,000? He wouldn’t. If the home is worth $350,000, a real investor will offer something in the range of $225,000 or less. You’d really need a “retail” buyer–someone who really wants to buy the home and live there.
Hope that helps.

By: bud68

bud68 — Sun, 01 Nov 2009 08:58:16 +0000

Scams for sure…

By: Alterfem

Alterfem — Sun, 01 Nov 2009 07:36:02 +0000

Yes they are! Don’t be foolish.

By: kemperk

kemperk — Sun, 01 Nov 2009 01:17:26 +0000

been in the paper; those are hustlers and scammers; that
service is free!!!

By: acermill

acermill — Sat, 31 Oct 2009 23:53:59 +0000

Discard them and move on. Yes, they are scamming, and they will end up with your house in the end.

By: Anonymous

Anonymous — Sat, 31 Oct 2009 21:00:29 +0000

You will be more than sorry if you reply to these rip off artists.
They know that you are in a weak position and looking for any way to save yourself and your home.
Don’t do it. They will prey on your fear, and you will probably lose your house and some $$$ in the process.
Why not put their business name into Google with the word rip off…see what comes up…

By: Elvis4ev

Elvis4ev — Sat, 31 Oct 2009 18:46:50 +0000

they will offer you a lot less than the property is really worth and you will still have to pay back the shortfall.
If they are sending unsolicited mail making you look bad to the world sue them for hurt feelings and emotional distress etc;
someone needs to stop these vultures robbing you when you are at rock bottom