Why do I say this is a scam? In some states the banks won't allow you to purchase the home at a discount with the intent of selling it back to the person in default. It is mortgage fraud!
The second reason is, even if it isn't written into the deed that they buyer can't sell it back to you, the contract they have with you is they buy the property from the bank for usually $20,000-$30,000 less than you own and then lease option it back to you for ONE YEAR and one year only. Then you agree to buy it back from them at the end of the year for $10,000 more than you owed before, and pay for your closing costs as well as theirs. This can total another $12,000 and so you are buying your property back for up to $22,000 more than you owed one year ago. You are also paying them a rent check every month, usually more than the market rent for an area, taking even more money out of your pocket.
So, why are they so willing to "HELP" you? Simple, they need your help to buy the property at a discounted price from the bank, and need your signatures on a lot of documents in order to even talk to the bank about your situation. The second reason is it is for a one year lease and not for any longer, is because they know that 98% of home owners can't get their credit back in order in less than one year. So these investors now get to keep the house and will sell it for whatever it is really worth.... even if that amount is $200,000 more than you owed on it when you sold it to them.
They don't want you to get the house back. They don't want you to recover. They want to sell it, make a large profit, and head on to the next person with the promise of them getting to keep their home. So don't get fooled by the scams that promise if they buy your home you will get to keep it, you won't!
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