Consumer: Offers to Buy a House for Cash
Authored By: Legal Aid of North Carolina
If you see a sign with this message "WE BUY HOMES FOR CASH, Any house, anywhere, quick", be aware.
This type of deal is a common method of committing consumer fraud. The target groups are commonly homeowners that are behind in payments and facing foreclosure. In this type of deal, the homeowner deeds his property to an individual "broker" who promises to make mortgage payments. The homeowner either remains in the home and pays "rent" or moves out so that the house can be rented to someone else. The homeowner incorrectly believes that he will get the home back.
Many times in this scheme, the broker fails to make the mortgage payments, but has collected from the homeowner or from the renter.
When the house is foreclosed, the homeowner finds himself with no home and loses whatever equity he may have in the house.
Homeowners approached by these brokers should contact the North Carolina Department of Justice before entering into such a scheme.
North Carolina Department of Justice
9001 Mail Service Center
Raleigh, NC 27699-9001