They make it sound tempting but this lady is in trouble

By
Real Estate Agent with John L. Scott Sp34627

They send out postcards, phone calls and texts.  They want to buy your property. They will pay all costs.  My customers often come to me and ask if its a good deal.  Usually it isn't.  Usually I could get them much more than offered.  

The market is very very much a sellers market in Idaho.  Even not fixed up homes go for a lot.  I met Mary through a lead generating service just after she signed a contract to sell her 3 bedroom, 2 bath home on the east side of town for $325.  She indicated she needed work so she felt good.   Yesterday I took her to see some mobile  homes on rented lots.  She did not really like it.  Yes it.  There was only one that was in her price range after the investor and it had a lo rent of $700/month.  Herr mortgage was only $990. 

The kind lady is elderly and has a disabled son that lives with her.  Between the two of them they get about $2000/month.  As I talk to this lady I realize that she is trying to protect her son but the lot rent is higher then his disability check.  Plus she didn't know that the county has a program to reduce or eliminate taxes for elderly poor people.  I suspect she wasn't always poor but gradually gave to her kids and now has spent whatever she had.  I strongly suggested she consider going closer to her daughter where the prices were slightly less. 

When I returned her home I asked to see her home.  It wasn't great but I was sure that I could get $350,000 for it.  It was in a nice part of town and was 3 bed 2 bath with a one car garage.  She then showed me the paperwork on the sale.  This is when I got mad

She explained how she talked to 3 different investors. The first one offered her $300K. This one offered her $320K.  The contract I was reading was for $290K.  She would get a check for $265K.  She had a mortgage of $190K.  There was a zero interest loan for $25K that she was giving the investor.  He would pay her $83/month for 5 years then a balloon payment.

I asked her why the contract was for $30K less.  She told me that he deducted the real estate commission and closing costs.  That should havve come to $22K tops. 

When I say I could get the $350K I am talking about a little cleaning and opening the windows.  Fixed up the house would be worth at least $400K. So he offered her less then I could get then took off the commission and then some. 

He left her so little I can't even get her something small and stable.  I seriously suggested she look into senior subsidized apartments for her and her son.  I drove her b one that I know of.  

With proper help and less scammers the lady's mortgage could have gone to about $800/month.  She might even qualify for some food stamp benefits.  If her family knew about her condition they might have been able to come and fix the cute house a bit. 

I gave her a to do list.  The first was to talk to a mortgage person and see if she can qualify for a mortgage.  Second to use the words reverse mortgage and see if she can add her son.   Then go to the investor and ask for the $25K at closing.  She is going to need it.  If she can get  out of the contract that would be good but I think the writing is sound.

I also would have developed a plan with her on what to do when she sold her house.  She is very very worried.  She doesn't know how she ended up old and broke.  

The investor scammed her out of a real estate commission.   It's not in writing but he took $30K off the offer price.  That is working as a Realtor without a liscense.  I don't care if I get a check.  If I can help this old lady I will.  I am furious that someone (probably several someones) think its OK to scam an old lady and her disabled son out of that much money.  She will have about $65K at closing.  If she dealt with me she would have had $115K at closing. 

Please do not answer those stupid postcards.  The want to take your profit and put it in their pockets.

Posted by

 Debbie Holmes

John L. Scott Real Estate

  

(208)761-2551 Email: d5holmes@msn.com

To search Boise Homes visit my website

 

Comments (3)

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Sad to say, Debbie... there are just too many people out there like this. When I get calls asking about these kinds of offers I always remind people that they get what they pay for. I truly resent that people like this make all of us who don't engage in such tactics look untrustworthy.

Feb 26, 2021 05:03 AM
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

YOU did the  right thing. I deal with these snakes all the time.

 

Thank you!

Feb 26, 2021 05:03 AM
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Debbie Holmes that homeowner should not have done a deal without an attorney by her side, if she did not have you there.....

Feb 26, 2021 05:50 AM