Real Estate Agent with Signature Realty & Associates

I wanted to post a short blog about an experience I had recently.  With so many homes going into foreclosure and people out there with not such great credit I am seeing a new type of investor/predator.  They claim to buy bank owned homes (often through a third party that deals directly with the bank and flips it to the investor).  This investor then "rehabs" the house....not really just a cheap paint job, and some incidentals.  They then place the home on the market and target people who are wanting to buy a home, but don't realize with a little credit repair they could actually qualify for a loan without getting involved with such companies.  The companies market the homes to this group of unsuspecting buyers, require 4% down payment (NON REFUNDABLE), and expect to have the buyer finance the home 3 to 6 months later or they loose everything?  How is this legal?  The worst part is that they are not disclosing pertinent facts about the home.  In this instancethe buyers were under the impression that the home that they are doing the lease purchase on was built in 1998 when in fact it was built in 1988.  To add insult to injury the home had a roof leak, which they repaired, with other roof rot that is not evident to the naked eye.  In short this home is going to need a new roof.....are these buyer's going to be able to afford this???  More than likely not.  Buyer's need to know that as REALTORS they will get all of the facts and that their interests are protected. 


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LaNita Cates
REMAX of Joliet - Joliet, IL

I'm not surprised with another con/scam in real estate. It's so ridiculous and sadly, people will believe these people and get burned.

Jul 21, 2010 12:47 PM #1
Lori Bowers
La Quinta, CA
The Lori Bowers Group

Then the buyers think all realtors are bad- we work so hard to treat people fairly and be honest and professional. So sad there are so many gullible people out there that still look for easy fast money.

Jul 21, 2010 12:49 PM #2
Susie Roscoe
Signature Realty Associates - Brandon, FL
Real Estate Specialist | Brandon, FL

It really is sad how the scams continue and get more creative.  What kind of person thinks up stuff like THIS anyhow?  BUYERS BEWARE...ALWAYS consult a REALTOR!

Jul 22, 2010 07:23 AM #3
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

This the reason why many buyers loose faith in us. There are times when I notice a hint of trust issues upon the first meeting

Jul 24, 2010 11:54 AM #4
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Nicole Kraus