There are still people out there who offer legitimate help. You really didn't give alot of information on your situation.

Hi Clarissa,
Please email regarding this post.
Thanks,
Regina
rdknightpaquet@yahoo.com

That's a bad idea. And I'm speaking from the investor perspective.

Some reputable investors used to do some of that. None of them are doing that any more. Many/most/nearly all the people who'll propose that now are scam artists.

Keep in mind: An investor wants to make a profit. The signs you see on telephone poles--"WE BUY HOUSES"--generally work like this. The investor determines the after-repair value of your property. Let's say, after it's all fixed up, it would sell for $500,000 (to use round numbers). The investor will take 65%-70% of that number. That brings the offer down to $325,000. Then the investor subtracts the rehab costs from that number. Let's say it's a fairly light rehab--$25,000. Subtract that from $325,000, and the investor's maximum offer will be $300,000. He'll start off offering less. So the investor needs and expects a profit.

Now, in situations like yours, you may or may not have any equity in the property. In the olden days (and even today) the arrangement like you're proposing works best with lots of equity. So, again, let's say your property is worth $500,000. You only owe $150,000 on it, but due to illness or divorce you've fallen behind on your payments. Let's say your payments are $1,500 a month. What some (legitimate) investors used to do would be to come in and buy your house for, say, $150,000. They'd give you the option to purchase it back from them in a year for $200,000. That's where their profit would come from. In the meantime, you'd pay them $1,500 a month. It'd still cost a lot, on a percentage basis, but it would sometimes work.

The problem is, lots of times, even with this arrangement, the owner can't get back on his/her feet in a year, or whatever the option period is. So, at the end of the year, the seller would be unable to repurchase the house at $200,000. Sometimes the seller wouldn't fully understand the transaction and would find a lawyer to take the investor to court. The seller would say that the investor had said that he was simply loaning the money, not buying the house. And sometimes the seller truly believed it. Usually, the courts would side with the original owner, but it was a long, messy, and ugly process. Then some slick scam artists got involved. They actually started telling the owners that what they were providing was a loan. The owners didn't know they were selling their properties. And sometimes the repurchase price wouldn't be $200,000, but $300,000 or $400,000. Something the originally seller clearly couldn't afford.

Some states, such as Maryland, have passed very strict (and poorly written) laws designed to protect the owner. (SB 761, for those of you interested.) Other states, like Virginia, have considered such laws. The Maryland law actually includes jail time for somewhat minor actions (though classified as felonies), such as individuals purchasing a house from an owner within 20 days of the scheduled foreclosure date. (Real estate agents are exempt from the prohibition.)

If you're facing foreclosure, try to work it out with your lender. If you can't, and there's equity in the property, try selling it. If you've got the time, use a Realtor and get the best possible price you can. If you don't have the time--if you're within a couple weeks of foreclosure--contact the "WE BUY HOUSES" people. They'll offer 65% minus rehab costs. But they can close in 7-10 days, sometimes less. If you have little or no equity, but some time, try a short sale; contact a Realtor. And if you have little or no equity and no time, unfortunately foreclosure is pretty likely.

But don't invite a purchase and lease-back. It's almost guaranteed you'll lose your home, and end up with nothing.

Good luck.

Hello Clarissa,
1st and foremost please be very careful who you listen to and get your advice from! I was once not long ago in your very situation. I want you to feel free to go to my site at the below link. I know there is some valuable information on ther you could use via newsletters and if you need a free consultation is yours at no charge! You control your own destiny sometimes we just need the answers to questions we may have.
Sincerely,
Wiley Calhoun
WyC Integrations

Hi Clarissa,

We are real estate consultants serving Mays Landing. I would like to learn more about your situation and needs. In order to give you my best advice I will need to meet with you for a consultation. Please call me at 609-916-7342 ext. 704 or contact me from my website with further details about your situation. Thank you and best wishes,

Matt

Clarissa, marc is correct...

you've opened yourself up to some serious scam artists. Contrary to Gail's experience, I feel they'll come at you at 40-50% discounts... they'll promise you that they'll rent to you, and sell back at a reasonable price, and as soon as they have title, they'll evict you.

be very careful, and have a real estate attorney approve everything for you.

Hello Clarissa, finding an investor to look at your property to buy is not as difficult at it seems. Investor buyer signs are all over the street corners in most cities. Call one of them up, and be prepared that they will try and pick up your property at a 10-20 % discount from your asking price. This may work for you but check it out before you determine that is doesn't work. While most realtors in your area would be glad to help you with the problem of moving your property, you may be in a 'time crunch' or an 'equity crunch' meaning that you don't have enough equity in your property to pay the brokerage fees. If you really want an investor to check it out, look at your newspaper listings under Investors-real estate to pick up a few buyer leads. It's worth a try. Good luck.

Clarissa,

Contact a Realtor in your area and talk to them about your situation. Are you facing foreclosure? I would imagine you are, or that your mortgage is now more than the home's value.

Do not do this alone - contact a Realtor in your area and talk to them. Tell them about your situation, as they may be able offer alternative suggestions to your situation. Typically, an investor is your last resort.

Frank Biganski, Realtor ABR

Be careful Clarissa,

You are opening yourself up to all kinds of horrible vultures by posting something like this on a public board. Please be careful!

-Marc