| Unfortunately, there are unscrupulous individuals and | | | | been lawsuits by homeowners who were scammed |
| companies whose goal is to take advantage of other | | | | with options. If they are successful in setting |
| peoples misfortune. They assure everyone that they | | | | precedents, we expect there will be many more of |
| are only trying to help the homeowner, they may have | | | | these suits. If you have lost your property through an |
| convinced themselves of this in order to pacify their | | | | option agreement, consider consulting an attorney. |
| conscience. The fact is, scammers and rip off artists | | | | There are many scams used in real estate. Even if |
| are proliferating the real estate industry in this down | | | | you are under stress and just want to get your |
| market. | | | | problems behind you, don't be in a hurry to sign |
| PROTECT YOURSELF - USE THE INFORMATION | | | | anything. Of course, you just want to get something |
| BELOW TO SCREEN PEOPLE WHO WANT TO | | | | done and get on with your life. Scammers take |
| BUY YOUR HOUSE. | | | | advantage of these emotions. Take your time, consult |
| Even though some may tell you they buy houses - | | | | an attorney if you have doubts about anything. |
| they will not buy in the traditional manner because they | | | | Some useful questions to ask anyone offering to buy |
| can't. They do not have the cash to buy and are not | | | | your house. |
| pre-approved for a mortgage. They must use some | | | | - If you do buy my house, will it be a traditional sale |
| scheme to take control of your property or buy it in a | | | | where we go to a closing in a reasonable period at a |
| nontraditional "creative" manner. Leasing, taking over | | | | title company. Will I get a check in full for the purchase |
| payments, land leases, options, buying "subject-to", | | | | price on which we agreed, with no further obligation on |
| taking your deed, giving you some money now and | | | | my part to either the property, the mortgage or you? |
| more money after they resell the house, are just some | | | | - Do you have the cash immediately available to do an |
| examples of these "creative", nontraditional methods. | | | | all cash purchase? If yes, please show me proof of |
| There are many more. | | | | funding. |
| If you ask them to show proof of funding or a | | | | - If you represent other investors who have the funds |
| pre-approval letter from a bank, they will typically not | | | | Who are they? How can I be assured that they have |
| be able to and offer an alternative such as - other | | | | the necessary funding? How can I be assured that |
| investors will provide the funding. | | | | they will fund the transaction? |
| Many "investors" are not formally trained and are | | | | - If you are borrowing the money, can you guarantee |
| inexperienced, getting most if not all of their "training" | | | | me the sale will close? Are you pre-approved for a |
| from infomercial real estate gurus, | | | | loan and for how much? Please provide the |
| get-rich-in-real-estate seminars and books. You can | | | | pre-approval from your bank. |
| often recognize these individuals by their | | | | - Do you expect me as the Seller to participate in any |
| "cookie-cutter" web sites. | | | | way in the finance or sale of this house? If so, why? |
| If anyone claims they will buy your house without any | | | | - How long have you been a real estate investor? |
| equity and pay the full retail price for it, you should see | | | | How many actual purchases of homes have you |
| a red flag. | | | | done in the last two years? |
| Someone may offer to stop a foreclosure (and | | | | - How many houses have you bought where you |
| maybe let you continue to live in the house). | | | | actually wrote a check for the purchase price? |
| Typically this would be done by: | | | | An ethical investor would not object to these questions |
| - Asking you to sign the house over to them, putting | | | | or to complying with a request for proof of funding. |
| their name on the deed. | | | | If you wish to learn about a company or individual you |
| - Giving you a small amount of cash up front & | | | | can find information online. If you are checking on an |
| "buying" your house & leasing it back to you. | | | | individual, you can track their buying and selling history |
| - Leasing your house and "promising" to make the | | | | by using the county auditor, recorder and clerk of |
| monthly payments, then selling your house in two | | | | courts web sites. Taking the time to learn how to use |
| years, and promising to give you the profit then. | | | | these web sites can reward you with much |
| - Encouraging you to file bankruptcy; or use some | | | | information. |
| other "creative" nontraditional approach. | | | | If you are looking for information on a business such |
| An Option To Buy is another tool that is used by | | | | as an LLC, Corporation or other business entity you |
| scammers. This is normally done in conjunction with a | | | | can find it at the Secretary Of State web site. Search |
| double closing. We suggest you be VERY careful | | | | under Business Filings. |
| when someone asks you to sign an option. In fact, | | | | The information above and throughout this web site is |
| consulting an attorney before signing an option could | | | | our opinion. Our comments may apply to some |
| save you a lot of money and problems in the future. | | | | individuals or companies and not to others. |
| Used incorrectly, options are illegal. Real estate agents, | | | | It is our belief that you should sift through the sales |
| attorneys and others have went to jail for using | | | | pitches and find the reasons why you should or should |
| options illegally. You don't want your money, house and | | | | not do business with a person or company. Compare |
| time tied up in court hearings. It is beyond the scope of | | | | your options and make the best decisions you can. |
| this web site to discuss this in detail but there have | | | | |