As more homes fall into foreclosure, more “I Buy Houses” signs pop up. The majority of these signs belong to private real estate investors or investment groups. Investors buy houses that are either in preforeclosure, already foreclosed, bank owned or probate real estate at discounted rates. Their services allow sellers and lenders the opportunity to reduce financial burdens.
Before contacting “I Buy Houses” investors, conduct research to determine their credentials. When there is money to be made and desperate people to scam, unscrupulous people crawl out of the woodwork. Currently, real estate is a prime target for scamming people out of their most valuable asset.
The Internet is a valuable resource for locating information about businesses and sole proprietors. Business owners must be licensed to conduct business in each state where they offer products or services. Business registrations are typically managed through the Department of Revenue or Secretary of State.
Consumer complaints are filed through each state’s Attorney General’s office, as well as the Better Business Bureau. Real estate agents and brokers are licensed through the National Association of Realtors.
You can easily locate any of the resources above by typing in your state along with the name of the organization; e.g. California Attorney General. These consumer protection agencies can help ensure the business or investor holds proper business licenses and is complaint-free.
As a real estate investor, I have heard numerous horror stories of homeowners losing their house to foreclosure scams. I have also witnessed newbie real estate investors duped into buying properties from “I Buy Houses” groups who were selling properties they didn’t own. Sadly, real estate has taken a hard hit from every angle. Whether buying or selling, homeowners and investors must take every precaution to protect their real estate.
Another common occurrence I face is desperate homeowners contact me daily; begging me to buy their home. The problem is most of these people have procrastinated far too long. By the time they call me, there is nothing I can do to help them save their home.
I would like to offer the same advice to you as I give to everyone else. If you have fallen behind with mortgage payments, today is the day to contact your lender. I realize it can be difficult to pick up the phone and attempt to negotiate a deal to save your home from foreclosure.
The truth of the matter is, the longer you wait the less receptive the bank will be to working with you. Once your property falls into foreclosure few options exist to stop the process.
If you are unable to continue making home loan payments and have not yet entered into foreclosure, your lender might offer the option of short selling your house. When lenders enter into short sale agreements they accept less than is owed on the mortgage note.
Most lenders require borrowers to have a buyer in place prior to negotiating the short sale option. Certain criteria exist and not all properties qualify. In fact, less than 20-percent of short sale requests are approved. If your lender participates in short sales, it is recommended to work with a realty professional experienced in negotiating short sale transactions.
Legitimate “I Buy Houses” investors can be extremely beneficial in helping borrowers obtain short sale approval. Seek out private investors through online real estate forums, local networking groups or by obtaining referrals from banks, mortgage lenders, credit unions, realty agents, brokers or real estate attorneys.