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Discussion Starter · #1 ·
I can't figure out this guys angle, but I think there must be one. He originally contacted me about buying the property, but in future communications has only used phrases like, "Helping you out," "We help people in your situation," and "What 'we' can do for you." I started to press for more details and this is all I could sqeeze out:

* He wants to see "all" my papers on the properly, including a copy of my homeowners policy.
* "They" will take over my mortgage payments
* Mortgage companies dont like this act, so "they" require for me to maintain a homeowners policy in my name

I couldn't find out anything else. I have asked him to forward me a sample copy of "their" agreement so I can forward it to my lawyer (I don't have one yet). I have not heard back from him yet.

Any ideas what his angle is?
 

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Kristin said:
I can't figure out this guys angle, but I think there must be one. He originally contacted me about buying the property, but in future communications has only used phrases like, "Helping you out," "We help people in your situation," and "What 'we' can do for you." I started to press for more details and this is all I could sqeeze out:

* He wants to see "all" my papers on the properly, including a copy of my homeowners policy.
* "They" will take over my mortgage payments
* Mortgage companies dont like this act, so "they" require for me to maintain a homeowners policy in my name

I couldn't find out anything else. I have asked him to forward me a sample copy of "their" agreement so I can forward it to my lawyer (I don't have one yet). I have not heard back from him yet.

Any ideas what his angle is?
Need more info to know what is going on here. Have you been seeking quotes on a refi? How did this guy know you might be interested in doing something? Is it a cold call?

Sounds like it could be a reverse mortgage he is trying to sell you, or it could be a leader for an id theft
 

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Need more info on the whole deal. Is there another thread this is being discussed?
 

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There's not enough information there, but at first glance it sounds like they will effectively take over the property and assume the debt, which allows you to walk away completely. If you have no equity in the property, this could be a good deal for you, although I would be careful of the tax implications. Definitely see the lawyer. Make sure you get away clean and you have no more liability. Taking over your mortgage payments is not the same as taking over your mortgage.
 

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Both of those thought crossed my mind as well. Or he is following the silly lead of one of those RE gurus like Carleton Sheets.
 

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Discussion Starter · #6 ·
Answers

mohair_chair said:
There's not enough information there, but at first glance it sounds like they will effectively take over the property and assume the debt, which allows you to walk away completely. If you have no equity in the property, this could be a good deal for you, although I would be careful of the tax implications. Definitely see the lawyer. Make sure you get away clean and you have no more liability. Taking over your mortgage payments is not the same as taking over your mortgage.
1. He made it clear he would take over the payments only. The mortgage stays in my name.
2. He did send me a link to their website, but has very limited information on it "www.cashnowbuys.com"
3. This was a cold call after I posted the property on Craigslist. It is "resting" until next week when I will put it back in the MLS.
4. Correction...I have negative equity in this propery
 

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Walk away. It's probably a situation where they "loan" you the money to pay the mortgage payments, and you will eventually have to pay it back when you sell, plus interest. Unless the title transfers, you haven't sold anything, and you keep all of the liabilities.
 

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Run for the freakin Hills

gonna drive you deeper in debt and lose yoiur home.

negative equity? why?
 

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Discussion Starter · #9 ·
Negative Equity

atpjunkie said:
gonna drive you deeper in debt and lose yoiur home.

negative equity? why?

I took a chance on a rehabbed property in a fringe neighborhood and lost. Its like buying the wrong stock. I'm in so deep now its not funny. That has set me back 10 years on my retirement plan. Its been empty a year. My total cash cost for the unused propery to date is $8058. I bought the property in 2003 for $89K. If I'm lucky, I'll get $86K for it. I also will have to do the sale without a realtor from 150 miles away because realtors don't really work for >10K commissions, and I can sell for less without it.

I am seriously cursed. I swear to God. In a year I've only managed to attract 15 scam artists.
 

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Kristin said:
I took a chance on a rehabbed property in a fringe neighborhood and lost. Its like buying the wrong stock. I'm in so deep now its not funny. That has set me back 10 years on my retirement plan. Its been empty a year. My total cash cost for the unused propery to date is $8058. I bought the property in 2003 for $89K. If I'm lucky, I'll get $86K for it. I also will have to do the sale without a realtor from 150 miles away because realtors don't really work for >10K commissions, and I can sell for less without it.

I am seriously cursed. I swear to God. In a year I've only managed to attract 15 scam artists.
I have heard of a scam like this where people sign up, and keep property in their own name. A company comes in and makes all of the payments while the person still lives in the house. After a specified amount of time, the person has previously agreed to sell the property for the current loan balance. I think it is an attempt to avoid capital gains, but I don't really understand how it works.

I know how you feel about your house. I sold a house in a depressed area for $7000 less than I paid for it, and $4000 less than I owed on it, just to get out from under it. This house had been empty for over a year. It wasn't fun, but I am out with my credit intact.
 

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Kristin said:
I feel for you, but its nice to know I'm not the only person who's been screwed in real estate. I'm trying hard to get out right now. Reality is that the bubble is bursting. Chicago prices are dropping. I'm not in the city, but still.
I represented a guy in a similar situation. According to the constable, his solution was to burn the place down and collect the proceeds. There was a fair bit of evidence against him, including multiple inquiries about his insurance policy several days before the fire, and an unfortunate sales receipt from Home Depot.
 

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Discussion Starter · #12 ·
Thanks

Big Bad John said:
I have heard of a scam like this where people sign up, and keep property in their own name. A company comes in and makes all of the payments while the person still lives in the house. After a specified amount of time, the person has previously agreed to sell the property for the current loan balance. I think it is an attempt to avoid capital gains, but I don't really understand how it works.

I know how you feel about your house. I sold a house in a depressed area for $7000 less than I paid for it, and $4000 less than I owed on it, just to get out from under it. This house had been empty for over a year. It wasn't fun, but I am out with my credit intact.
I feel for you, but its nice to know I'm not the only person who's been screwed in real estate. I'm trying hard to get out right now. Reality is that the bubble is bursting. Chicago prices are dropping. I'm not in the city, but still.
 

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You need to follow my rule #1
Never trust anybody about anything.....at anytime.
If you know them really well, trust them as long as they are in sight.
 

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just take the loss and get out

talk to an accountant,maybe you can deduct the loss from your taxes. You made a poor investment decision, don't make it worse by making another. Can you sell yourself or find one of those lower rate dealers?
 

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Discussion Starter · #15 ·
So you're saying this is not a good option?

morrison said:
I represented a guy in a similar situation. According to the constable, his solution was to burn the place down and collect the proceeds. There was a fair bit of evidence against him, including multiple inquiries about his insurance policy several days before the fire, and an unfortunate sales receipt from Home Depot.
I should return the gasoline can? Actually, this was the one thing that occurred to me with this potential "helper." He was really interested in my homeowners policy. I envisioned them letting themselves in for some repairs and a fall off of a ladder and lawsuits and such.
 

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Kristin said:
I should return the gasoline can? Actually, this was the one thing that occurred to me with this potential "helper." He was really interested in my homeowners policy. I envisioned them letting themselves in for some repairs and a fall off of a ladder and lawsuits and such.
Could be, but I doubt it . . . if he is in the "business," the third or fourth accident might clue someone in.

Yeah, return the can. Insurance fraud bad; arson worse.

Good luck
 

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The Ibuyforcash types are widely regarding as complete rip-offs to downright scams. Stay way way way way far away.

I would suggest renting the place with a rent credit towards the purchase- this is an option often touted as being in short supply and high demand. Maybe contact some local low income first time buyer non-profit groups about working with them to put a buyer they pre-qualify into your home.
 

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morrison said:
I represented a guy in a similar situation. According to the constable, his solution was to burn the place down and collect the proceeds. There was a fair bit of evidence against him, including multiple inquiries about his insurance policy several days before the fire, and an unfortunate sales receipt from Home Depot.
Credit card receipt?
 

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Good advice. What are rents in your area like? You may be able to get some of it paid off without using your money, let it ride a few years as a rental, keep it in good shape and you could end up with positive equity again. Even if it doesn't make money as a rental, you can write off the loss, expenses of maintaing/improving etc.
 

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Are you renting the property?

Maybe I missed this in the details, but renting might stop the bleeding while the neighborhood turns around/you find a buyer.

soup
 
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