Foreclosure in 08618>Question Details

Pfdesigner, Home Seller in 08618

This Co. says they will short buy my house for 60% and give me a lease op to buy back up to 10 years is this a good deal

Asked by Pfdesigner, 08618 Mon Jan 24, 2011

they said i can buy back at the orignal price

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Bob Movin-On’s answer
Be careful, do not pay any upfront fees. Even if they are legit banks do not want defaulted homeowners to end up being involved with the reacquisition of said defaulted home. We have attempted to keep many people in their old home with success only when the bank does not find out it is the defaulted homeowner that will occupy and eventually reacquire the home.

Good Luck
Bob Patrick
Buy a home after foreclosure, short sale or deed-in-lieu-of expert
Movin-On LLC
Helping families/people that have lost their homes get back into another one in as little as 6 months.
1 vote Thank Flag Link Tue Jan 25, 2011

I'm assuming since you visited this stopping foreclosure website, you are facing foreclosure. If this is the case, I understand how you may be desperate to do anything to stay in the house, avoid foreclosure, etc. but going through this company is not in your best interests. First of all, only your lender can agree to accept a short sale. What if your lender doesn't accept the 60%? I cannot almost guarantee there will be no lease option to buy back and even if there was, the bank will not allow you to live in the house or rent/lease it. Read Jack's answer below.

If you wish to stay in your home, your best bet is to first see if you qualify for a loan modification. If you do not qualify and do not have sufficient income to keep your home, unfortunately the best thing to do is to let it go but now through this third party. Work with an experienced agent in your area and try to do a short sale. You will eventually have to leave the home and a short sale is a better option than having the bank foreclose. You can rent for a few years or live with relatives and maybe be able to purchase another home in a few years. I know its not the option you want to hear but its reality. Try working with your bank first and do not use or listen to any of these third party companies involved with purchasing short sales, buy backs, etc. Many, if not all, are scams.

The New Jersey Courts are now offering foreclosure mediation which may be an option for you or Hope Now may be able to assist.

Good luck and beware of these companies. They prey on foreclosure victims.

Gina Chirico, Sales Associate
Lattimer Realty
973-715-1158 cell
973-575-6353 ext 17 office

If you're facing foreclosure, I understand that you will practically do anything you can to stay in your home
1 vote Thank Flag Link Tue Jan 25, 2011
It sounds like a scam to me. I would have a lawyer review all documents. Most banks will not allow a short sale where the owner is allowed ot remain in the house, or when there are any side deals or arrangments. The banks want an Arms Length Transaction.

We are a professional short sale service. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
1 vote Thank Flag Link Mon Jan 24, 2011
Hi Pfdesigner,

Be very careful what you get into!! First thing I immediately question is how they can guarantee that they will short sale your house and buy it for 60%. How is that possible? The bank, your mortgage holder, is the one setting and agreeing to a final price. It's an empty promise as they do not control the selling price. Most likely they'll try to snow you after the fact with a higher inflated price that almost magically makes their number 60%.
They then will set up the lease purchase agreement at, you guessed it, the highly inflated value to make sure that at the time you can actually exercise your buy option you either pay too much or you decline buying leaving the money you set aside for the lease purchase in the hands of the seller.
Another worst case scenario: You're renting after the short sale went through. They now own the houseand do a refinance for the actual value getting whatever cash out that is possible. Then they stop making payments while collecting rent. By the time you find out that a foreclosure is under way they disappear leaving any lease purchase agreement up in the air.

Suzanne called it down below: If it sounds too good to be true, it almost always is.

Jack Vollenberg
RE Appraiser - Vollenberg Appraisers
Realtor/REO Asset Manager - NJ Real Estate Associates LLC
1 vote Thank Flag Link Mon Jan 24, 2011
It's a scam. There has recently been a person arrested in Washington Crossing for offering the same package. The problem is, is that after you sell it to him he now owns the house and you are just a tennant and have no rights. Normally they look for a reason to evict you after the closing.

I would suggest that you talk to my Certified Property Expert Joel Gruenke. He has helped many homeowners through this. There are many programs out there that he knows that may even enable you to keep your home. Shoot him an email and I am sure he can at least give you some sound advice.
Web Reference:
1 vote Thank Flag Link Mon Jan 24, 2011
I would be highly skeptical that any bank would allow you to remain in the home. Bank sales must be what is called an "arm's length" transaction, and to me, it appears that you are still benefiting from the transaction. Check it out carefully, check references, and if all appears to be above board, you might consider giving it a shot.

Good luck!
1 vote Thank Flag Link Mon Jan 24, 2011
I do not know of nor hurt of this company, please be VERY careful and do a lot of research. Unfortunately there are company's out there looking to take advantage and capitalize on home owners, and I mean no disrespect here, but desperation. Do your home work and I would guess you are better off contacting the bank or lender holder yourself and see what you can negotiate. Best of luck to you.
1 vote Thank Flag Link Mon Jan 24, 2011
I would be very careful and show any documents they provide you with to a Real Estate attorney. I have seen sellers get ripped off in and thrown out upon settlement. Have your home appraised first by a licensed appraiser or contact a Realtor for a market analysis that specializes in short sales.

Janet Larsen, Broker/Associate
Remax Connection
Web Reference:
1 vote Thank Flag Link Mon Jan 24, 2011
Most banks I have dealt with will not permit the former owner to remain in the home as a tenant. I would ask for some proof, perhaps referrals for people they have done this for and I would definitely check with a local lawyer who is very well versed in real estate law and particularly in short sales and foreclosures.

Remember, if it sounds too good to be true, it probably is.
1 vote Thank Flag Link Mon Jan 24, 2011
Well, first off, why would you wait 10 years to get into the real estate game again?

I would suggest hiring a local brokerage who does well with short sales look at your home and consider listing it and getting it sold.

Hit a rental, live below your means and get on the track to repair your credit and save some money. Within just a couple years, you'll be good as new and can buy whatever it is that you qualify for.

Once your property is listed, tell this company they can buy it if they wish. Chances are, if they can't get it for the deal they want, they'll drop it like a hot potato just before foreclosure and then what?

As for tenants not having rights? That's ridiculous! Tenants rights in most states are very strong, if not tenant leaning.
0 votes Thank Flag Link Mon Jan 24, 2011
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