10/03/2024
đźš©Flood Victims Please Be Aware! đźš©
I don’t normally share copy and paste posts, but this one is really important and not worth re-writing because it’s already said so well.
Don’t get scammed by these “investors” talk to your favorite licensed realtor first!
There are going to be investor types making offers to owners in desperate situations. Please be cautious - there are two types that could cause major loss of your equity and they will make more because most people lack the understanding of the contract.
Do not sign anything until you speak with an experienced real estate agent or real estate attorney.
One is a wholesaler who makes the contract assignable. They will then flip the property at closing to another end buyer for a higher number and pocket the difference (YOUR EQUITY!)
The other is called "Subject To". In a Subject To they will often throw a number at the seller that is well over market value, but the contract states they will pay you a down payment and continue to pay your mortgage. The risk is if the buyer does not make the mortgage payments, the sellers mortgage company can foreclose on the property. If made aware that the seller has sold the property, the seller's mortgage company may also exercise the “Due on Sale” clause and call the mortgage immediately due in full.
Again - talk to a really knowledgeable licensed real estate agent or attorney before you sign ANYTHING.
