Buy house for cash businesses are becoming a popular choice for homeowners facing foreclosure. Many borrowers are desperate to sell their home quickly to avoid the stress and embarrassment of losing their home. But, are these home buying businesses legitimate or just another way to scam people out of their property?
Homeowners can avoid buy house for cash scams by taking time to conduct research. The Internet provides a wealth of information as long as you know what to look for. One of the first red flags is when companies send correspondence offering to buy your house. Although some of these businesses are legitimate, many are fly-by-night scam artists working out of boiler rooms.
These organizations hire people to scour public records at local courthouses. Each day they pull Lis Pendens and Notice of Default records filed by mortgage lenders. These documents provide information about the property and homeowner. Buy house for cash companies compile a list of names and send solicitation letters.
Legal businesses entities must be registered within each state where they conduct business. Business license information is usually filed through each states Secretary of State office. Some states list business license information through the Department of Revenue. To locate registered businesses, type in the name of your state plus “business license”; i.e. “California business license”.
Oftentimes negative information is presented on government websites. The Attorney General’s Office handles consumer complaints, while the District Attorney oversees criminal complaints such as fraud. Visit your state government attorney offices to see if warnings have been issued against any buy house for cash companies.
The Better Business Bureau provides consumer reports on registered businesses. By visiting BBB.org, consumers can locate positive and negative reports and determine how companies responded to complaints.
Type in the buy house for cash business name at your favorite search engine. Scour results to see what others have to say about the company. Look for entries posted in real estate forums or check RipOffReport.com to determine if reports have been filed.
Buy house for cash programs can provide solutions to distressed homeowners who need to sell their house quickly. However, careful consideration should be given when working with newly founded companies. At minimum, sale contracts should be reviewed by a real estate attorney to ensure they are legally binding.
A lesser known option to sell real estate quickly is to seek out private investors or investment groups. Many real estate investors are purchasing distressed properties because they can buy them below market value.
It is just as important to engage in due diligence when working with real estate investors. Ask for references and take time to contact each. Conduct research online to make certain you are working with a credible and trustworthy investor. After all, you are selling your most valuable asset and should not engage in risky behavior that could place you at financial risk.