We have an investment home--long story short--we need to get rid of it. It's becoming a headache. We got in touch with a motexinvestments who have made us an offer. They will take over both mortgages and we pay them $4500. We are done with the house. Is this legit? Because of the condition of the house and location, we anticipated losing about $10,000 had we tried to sell it ourselves.
2007-06-12 02:33:39 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
We would remain on the mortgages until they actually turned around and sold the house. Then we would come off the mortgages. Apparently this is all in a contract.
2007-06-12 02:44:50 · update #1
They just sent us a contract. Can anyone look over it and see if we are protected?
We are active duty Army stationed halfway across the country, upside down in the house and trying to get out from underneath this.
2007-06-12 15:26:41 · update #2
First, I have to take issue with
Yanswersmonitorsarenazis's referring to them as "borderline crooks". There is nothing even remotely illegal about what they're proposing. How do I know? Because I make similar offers (many of which are accepted) every day. It all depends on the seller's needs. Ask any of those people who tell you NOT to take this offer if THEY'LL make your payments! I make the seller a FULL PRICE offer if they'll stay on the mortgage while I get my "rent-to-own" buyer qualified for a new mortgage. That usually takes 15-18 months. I always get AT LEAST a 3 year term from my seller in case it takes longer or the first buyer doesn't buy. And unlike "regular" renters my buyers take care of (an occasionally improve) the property at their expense. Why? Because they truly want to own the house and because I have a fairly significant amount of their money up front.
I keep 3 months of payments in escrow so that the money is always there to pay the note in advance. If my buyer defaults, I evict them WITH THEIR MONEY. If the seller's notes are low enough to generate a monthly "spread", I give most of it to the Seller. Frequently, they get accustomed to receiving the money monthly and want the deal to last as long as possible. During the lease, we take over the payment, taxes, insurance and maintenance/repairs.
My buyers and sellers are usually VERY happy with the arrangement. My seller got FULL PRICE for their property and my buyer, who otherwise was stuck renting, gets to live in a nice house in a nice neighborhood.
Addition:
I'm not an attorney, but if you'd like me to look at the offer they sent you, I'd be glad to do so. My contact info is in my profile.
2007-06-12 14:44:00 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Get a contract and have a lawyer read it, if possible. I really don't have any experience with these companies but I do know that you need everything in writing. Also, check the Better Business Bureau. You can look up companies on the BBB web site.
You might also check out the book, "How to Sell Your House in 5 Days." I got a copy at the library and the system sounds like it would work. The author says it will work anywhere.
2007-06-12 09:59:28 · answer #2 · answered by angela 6 · 0⤊ 0⤋
Proceed with caution. What do they mean by 'taking over both mortgages'? Do NOT let them tell you that they will just make the payments on YOUR mortgages. You need to have your mortgages fully retired (paid off) and a new mortgage taken out in the name(s) of the new owners. Failure to do so leaves YOU obligated to your mortgage contract if this new owner should default.
If they are willing to procure their own financing in their names and you are content to pay them $4500 to take the property, I see no issue. Just insure that YOU are legally removed from any further obligations to this property and its mortgage(s).
2007-06-12 09:39:51 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
Whoah. Hang on there.
You should NOT "sell" them the home without forcing them to get their own financing.
What happens if they don't make your payments? Do you have the cash to do so anyway?
I wouldn't give them the $4500 until they took full possession and paid off all liens.
These companies are "legit", but borderline crooks. They lowball the heck out of their offers and some people take them. Many probably could've done better elsewhere.
I wouldn't do anything that required you paying them, but not being released from your obligations legally (not just a contract saying they'll pay).
2007-06-12 11:38:42 · answer #4 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 1⤋
there are always folks willing to take advantage of your misfortune. be wary.
you will still be liable until the house is sold, so it does not sound like it's your kind of deal
2007-06-12 09:39:44 · answer #5 · answered by pops 6 · 0⤊ 0⤋