Are the Yard signs "Cash for Property" a Scam?

If you're one of many home owners who, in todays tight economy, finds themselves between a rock and hard place, unable to pay the mortgage and needing to sell fast, you've probably noticed those "Cash for Property" yard signs.

Of course there may be other reasons you need to sell quickly as well, like losing a job and having to relocate, divorce or other issues. But if you need to sell fast you need to be careful of scam artists who would like to take advantage of your situation. That said, that doesn't mean the "Cash for Property" signs are a scam. You just need to be aware that are those would like nothing more than to take advantage of you. Following are a few scams you might see when responding to "Cash for Property" sign.

Cash for Property Equity Skimming:

The first to watch out for cash for property scams is called equity skimming.

In this case the "buyer" would have you turn your deed over to them. You then make your mortgage payments to them rather than the mortgage company. You may even be asked to move out so they can rent your home to make some income off it.

Along with either getting a payment from you or a renter they may flush any equity out with some kind of equity loan. Of course they may just resell the house but never pay off the first mortage.

But somewhere along the way the equity is gone and so are they and your stuck with the bill. You see they had title to the deed but never assume liability for the mortgage. The result is your left hanging the bag with no equity, a foreclosed house and a negative credit rating.

Cash for Property Bait and Switch:

This simple takes advantage of most peoples trusting nature.

I most cases the buyer will inspect your house and make a some verbal offer that you agree to. He'll come back some days later with what he'll say is just the formal version of what you discussed with no changes and, with your trusting nature, you'll just skim through it and sign.

Before the closing you may find they come back with, what they'll represent as, so called minor changes and nothing that affects the original agreement. At some point, though, you'll find that what you signed looks nothing like the original agreement and you've been had and it could take months to get it all undone.

Cash for Property Overseas Scam:

You've probably heard of the overseas scams where some emails and says their moving to the US and want to buy your house but just need a little cash to get over here. They tell a very compelling story to get you to feel sorry for them. Often their a "Christian" for a "Pastor" to help you feel more secure. But in the end they just want access to your bank account where they can take everything in it.

NEVER give out your banking information or send money to ANYONE! If you do, you'll never see that money again.

How To Protect Yourself from Cash for Property Scams:

• Read the Contract: Get everything in writing and always read any documents, contracts or changes thoroughly. If there's something you don't understand ask the buyer or better have your lawyer take a look at it.
• Check out the Buyer: You can check with the Better Business Bureau, Consumer Fraud Unit or State Attorney General's office to check out a buyer. Check their references.
• Be Willing to Walk Away: Always be willing to walk away from a deal. These can be hard times and when you have a buyer in hand you just want it to be over. But do your due diligence and dot the I's and cross the T's. The headaches of pressing through with a bad deal aren't worth it.
• Work with Professionals: There are this those of us out here that truly want to help you avoid foreclosure and have a number of legitimate ways to get the job done. A legitimate business owner will have a good history in the area and be more concerned about maintaining their reputation than ripping you off.

In Conclusion:

Remember that buyers need to make money just like you need sell your house. The "cash for property" folks can be the last stand in avoiding foreclosure and you can expect offers in the range of $.60 to $.75 cents on the dollar less whatever repairs might be needed to the property. There are many legitimate buyers that have cash to help you get out from under your financial difficulty. Just be careful to avoid the scams.

If you need cash for your home, I hope you'll take the time to contact me for an offer. I have access to a number of buyers that would love to make an offer on your home today. So don't wait… Call or email me now and avoid the scams that could be waiting from the cash for property buyers.