| There are many reasons why a home owner would | | | | compelling to the point that you actually feel good |
| want to sell a house fast. Job change, relocation, | | | | about helping him out -- not to mention being able to |
| debt problems, divorce and inheritance are just a | | | | sell your home. |
| few. Unfortunately, people in need also tend to | | | | Ultimately, though, his only goal is to get you to |
| attract predators who have no problem profiting | | | | transfer him money and/or to get access to your |
| from someone else's misfortune. | | | | bank account so that he can transfer the funds |
| If you're looking to sell a house fast, here are a few | | | | himself before you realize what has happened. And |
| scams to be on the lookout for and how to avoid | | | | because he is outside the U.S., recovering your |
| becoming a victim yourself. | | | | money can be next to impossible. |
| Equity Skimming | | | | How to Protect Yourself from Scams |
| One of the most common types of "we buy houses" | | | | If you need to sell a house fast, here are a few rules |
| scams allows the "buyer" of the home to make off | | | | for protecting yourself from falling prey to a scam |
| with most or all of your equity. It begins with you | | | | like these. |
| transferring your home's deed to the "buyer." The | | | | Only Work with Professionals |
| buyer may then have you make payments to him | | | | The best way to protect yourself from scams is to |
| instead of the mortgage company, or he may have | | | | work only with professionals who have an established |
| you move out so he can begin renting out the house. | | | | history of home buying. These days, anyone can |
| There are several ways the buyer can then profit | | | | order a book from an infomercial and become a |
| from this transaction. First, he receives some sort of | | | | "professional home buyer," but real professionals |
| payment every month -- whether from you or from | | | | have been in business for many years and have |
| the renter. Second, he can use the equity in your | | | | closed millions of dollars in real estate transactions. |
| home to secure home equity loans or other lines of | | | | Their primary concern is the health of their business, |
| financing. Third, he can simply resell the house | | | | and they will not risk that by cheating you or |
| without satisfying the outstanding mortgage. | | | | otherwise treating you unfairly. |
| Ultimately, once most of his profit is exhausted, he | | | | Check Out the Buyer |
| simply stops making payments on the mortgage and | | | | If you have any concerns about the buyer, don't |
| allows the home to go into foreclosure, because | | | | hesitate to check them out. Contact your state |
| while he holds the deed to the home, he never | | | | Attorney General's office, your state's Real Estate |
| assumed liability for the mortgage. As a result, you | | | | Commission, or your District Attorney's Consumer |
| are left with a foreclosed home, no remaining equity | | | | Fraud Unit. If they are an established business, also |
| and a significant black spot on your credit history. | | | | check out the Better Business Bureau. |
| Contract Bait and Switch | | | | Always Understand What You're Signing |
| The contract "bait and switch" is a clever scheme | | | | Not asking questions because you are afraid of |
| that takes advantage of the trust between buyer | | | | looking stupid could end up costing you tens of |
| and seller. | | | | thousands of dollars or more if you end up in a deal |
| In one version of this scam, the home buyer inspects | | | | that wasn't what you thought it was. A lawyer or |
| your house and makes a verbal offer that you | | | | even your mortgage company can help you if you |
| accept. A few days later, he presents you with a | | | | want professional advice from a third party. Never, |
| written contract that he presents as "just a formal, | | | | ever sign a contract that you don't understand. |
| legal version" of your verbal agreement. Because you | | | | Get All Agreements in Writing |
| believe it to be the same offer you had already | | | | If a disagreement arises about a verbal agreement, |
| agreed to, you simply skim it and sign on the dotted | | | | the issue becomes your word against theirs and |
| line. | | | | often must go to a court of law to be settled. Don't |
| In the time between signing and closing, he may also | | | | risk that. Insist that all terms be in writing, and don't |
| deliver one or more "minor changes" to the contract. | | | | agree to anything that isn't. |
| He presents these as simply "a few tweaks" and | | | | Be Willing to Walk Away |
| nothing that really affects the original agreement. | | | | If you have any doubts about the buyer or the |
| At some point, though, possibly at the closing or | | | | contract -- or if it just doesn't feel right -- just walk |
| even later, you discover that the last contract you | | | | away. It's never worth the months (and maybe |
| signed actually bears little resemblance to the initial | | | | years) of future headaches to sell your house a few |
| offer, and you are either stuck with a losing home | | | | days sooner. |
| sale or tangled in legal battles for months or even | | | | Conclusion |
| years to get out of the contract. | | | | If something sounds too good to be true, it usually is. |
| Liberian FSBO | | | | So don't get so emotionally tied up in the sale of |
| This scam is an interesting twist on the Nigerian Scam | | | | your home that you abandon caution and logic. Your |
| or 419 Scam. In it, a person outside the U.S. contacts | | | | home is both a major financial obligation and a major |
| you after seeing your house on a For Sale By Owner | | | | asset. Falling prey to a scam like these will have |
| site, telling you that he is looking to move to the U.S. | | | | major repercussions many, many years down the |
| soon and can pay cash for your home. His story is | | | | road -- and maybe for the rest of your life. |