You’ve probably seen the ads for companies that buy houses quickly and with cash, but which of these companies that buy houses can you trust?
Read on to learn which are legit and which to avoid.
Sorting Through Mortgage Fraud:
The recent headlines touting scammers’ arrests of individuals and companies that buy houses, tend to stir our fears, but perhaps they should offer the public peace of mind. Here’s why:
Officials are cracking down on fraudulent real estate scams.
Homebuyer Sanjiv Kakkar, 55, of Saratoga, California, was sentenced to 48 months in prison and ordered to pay $4,208,565.36 in restitution after he submitted falsified documents and was found guilty of wire fraud committed during a real estate scam.
Meanwhile, Dianna Woods, 60, Citrus Heights, California, was sentenced to three years in prison for four counts of making false statements on loan applications.
So, why should sellers feel comforted by these headlines?
Simple: the companies who buy houses that are operating unethically and participating in fraudulent quick sales are no longer getting away with it.
What may have worked in earlier years is being recognized by law enforcement as criminal behavior, which reduces your chances of running into a scam when you are looking for a legit homebuyer.
What You Should Know About Homebuyer Scams:
Here are some ways that homebuyers take advantage of sellers, and what you should watch out for so that you don’t become part of their scheme:
- The Foreclosure Rescue Scheme: A fictional company asks for upfront fees and has a homeowner sign over their home by pretending to obtain a new (affordable) loan on their behalf.
- The Appraisal Scam: The appraiser hikes the value of the home by overstating market value or property traits to get a higher quote.
- The Scammer’s Short Sale: An undercover accomplice sneaks in and lowballs a desperate homeowner, then flips the property for fair market value, leaving the homeowner out of any profits gained.
- Falsifying Loan Documents: A buyer gives false information to get a lower rate. They may pretend that they will be occupying the residence when they intend to rent the property.
However, there are several circumstances that real estate experts advise a short sale with companies that buy houses…
Experts suggest that homeowners in may benefit from a quick, cash sale under the following circumstances:
- When it would Preserve Your Credit: a short sale won’t typically damage credit to the same extent as a foreclosure or bankruptcy.
- When you want to keep your mortgage eligibility intact. Fannie Mae backs short sale applicants about 3 times sooner than foreclosures.
- When the value of homes in your area is declining…then a short sale could be wise.
Trustworthy homebuyers go the extra mile to earn your trust.
Knowing Who to Trust:
Trustworthy companies that buy houses are companies who…
- Share the profits that are gained from your sale. Part of the earnings made from a resale or even a rental, are passed on to you!
- Don’t ask for upfront fees or add extra costs.
- Answer your questions and are available to guide you every step of the way.
Contact us if you need a company that you can count on!