House Going Under

I am a Realtor and we are seeing a lot of this right now. Has the owner contacted their mortgage company? The mortgage companies do not want any more houses right now. Depending on the Owners balance and other things, they have options. They need to call and ask for the Loss Metigation Department. Then call a Realtor in the area, that has worked with this type of situation. Depending on what area, I can refer you some. Please do not give up and walk away from the house and do not pay someone else big bucks to take it off your hands. I can help if it is in an area I am familiar with.

I would contact legal counsel.

This is a scam - probally legal but still a scam.
They are preying on the misfourtune of others.

I am in the mortgage business. The situation you describe above sounds like a scam to me. Have them contact their current mortgage provider and describe the situation to them. It just doesn't "feel" right. Another thing they should do is call the Roddy Company - ###-###-#### - this is a company that purchases investment properties and I've taken a number of their courses on the subject - have your friend call then and describe what this company is asking them to do - and have her ask them for their advise. They are a wonderful company - good quality people. I hope this helps!

M., is your friend wanting to leave the home?? Have they tried speaking with the Mortage company about Loss Mitigation? Loss Mitigation is what I do for a living. I have saved over 152 homes just in the last 6 months. There are many different options instead of foreclosure. And the $17000.00 sounds a bit high for an investor to come in and buy out the property. They are getting on a short sale. Which means that they are paying far below market price for the property. If they are interested in staying in the home and can afford the orginal rate I can help. Furthermore, have they had a recent life changing event...loss of job, having a child or death or being sick. These factor are temporary and the mortgage company can help. You just have to know what to say and what department to get too. Please let me know if you need my help.

Thanks T..

No way that sounds like a good idea. I would put the house up for sale and market as "pre-foreclosure" and get it sold quick. Or call and talk to their mortgage company and find out what their best option would be. Mortgage companies sometimes can work with you if they know that you are going to "walk away". It prevents them from having to go through the whole foreclosure process and saves a lot of headache for both parties. My recommendation - don't agree to anything like this "promissory note" but call and talk to a mortgage specialist at their mortgage company. Time is the most important thing...so I would call today.

It sounds like they are wanting the home owners to create a "Cash Note". This is fairly common - especially now. I would only suggest that they are working with a reputable company.

If it keeps foreclosure from their credit - it might be a pretty sweet deal. Especially interest free?! That is great!

Just advise them to make sure all of their i's are dotted, and t's are crossed.

Edit: Well, I read the other responses and it seems pretty clear that they should call their mortgage company. But, chances are, if they are in this situation - they already have called them and the mortgage company has let them down.

What these "we buy houses" people do is buy a house for very cheap - so they can still make a profit on them. That is just good business sense.

What is sounds like from your friends case, is that they owe more on their mortgage than what the "we buy houses" people can afford to pay them... so... they (the we buy houses people) are going to pay off their mortgage, and in turn, your friends are going to sign that promissory, or cash note to pay those we buy houses people for their loss.

This is a very creative way to get out of a sticky situation. It is just important that they are dealing with an honest company - and yes, those honest companies do exist.

Of course, if their mortgage company will help them out - that is even better. But, I am willing to assume that they have tried that already to no avail.

DON"T do the "buy houses quick" deal. They are shady and I don't trust those people. They don't buy your house for close to what you owe, then you still have the remainder balance on your credit by default (which also means foreclosure).
Ask a mortgage broker about a "reverse mortgage". I don't know if there is an age limit on this, but alot of older people do this to keep their homes. I know a mortgage broker in Garland if you want to call him and ask. Can they get a home equity loan to pay the house off then pay a smaller payment on the home equity loan? Ask Ace Jefferson, ###-###-####

Unfortunately, there are people in every field of business who lack integrity. I'm sorry your friends encountered one of those real estate investors. However, there are plenty of us out there who do have integrity and provide win-win solutions. No way should they pay someone to take their house, nor should they let it foreclose if at all possible. I agree the first step is to call the loss metigation dept. of their mortgage co., who will most likely work with them. Be very wary of reverse mortgages and ARMs. It's those kinds of programs which get people into this trouble. They look attractive upfront b/c there is a lower monthly payment, but you end up paying way more than if you do a conventional 30 year mortgage. I know it all gets very complicated and confusing. I personally think those programs shouldn't be legal, b/c lenders seldom take the time to educate the buyer. I am not currently buying houses, but know of a couple people who are. If all else fails and they are facing foreclosure, I can talk to them and see if there's a win-win solution.