Beware Of We Buy Houses Scams | Mortgage

by MathewBossert

Youve seen the signs on billboards, We Buy Houses, fast sale, cash, etc. Real Estate investing has a new crop of scammers, only this time theyre not selling a get rich quick scheme, no this time they want your house.

Now before we go any farther, You should know that this article is only referring to unethical or scam companies. There are many legitimate House Buying companies that get people out of tough situations.

A brief overview of a scammers business in a nutshell. They buy houses quickly and for cash. To do this they usually have someone else lined up to resell the house to. Doesnt sound too diabolical so far right?

Its how they make their profit which is questionable. Its made from the equity in your house. You see, theyre only willing to pay just enough to get you to sell. They start by coming to see the house, they walk through and talk with you. Theyll try to get you to tell them how much you own on the house, even though its none of their business. They do this to convince you to trust them, that they want to help you.

Make no mistake, theyre in it for themselves, this is their business and they do it by convincing you your house isnt going to sell any other way, that its in needs repairs. Youre not going to benefit from this deal.

It gets worse. No only will they expect you to take their offer, depending on how they operate, you might end up not having enough money to pay your outstanding mortgage once you do sell.

The worst companies will try to get you to sign over your deed, you might think your house is sold but its not because you still have a mortgage on it. Now they control your house and youre stuck with a mortgage to pay. Avoid any deal that keeps you holding a mortgage on the house, even after you sell it.

If you are thinking of using a We Buy Houses service, be sure to read everything before signing, get all agreements in writing and ask questions about anything you dont understand. If you need help talk to bank, also investigate the company by calling your state government to find out about any complaints by previous customers. Rule #1, be cautious, follow this advice and youll be safer and happier.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

To avoid We Buy Houses scams, see this helpful article. It's got lots of tips on who should use a We Buy Houses service.