Mortgage Wizard: "I see by your ad on Craig's List that you are selling your home on your own. Your ad says it is priced way below the appraisal value, that's too bad, but I think I can help you out."
Florida FSBO Seller: "Well that would be great. Are you going to buy my house?"
Mortgage Wizard: "Well, let me explain...I am a mortgage broker who has made a great living over the past several years doing mortgages for people. My mortgage business has really slowed down, so I have gotten together a large group of investors who are buying properties. I find 'em, they buy 'em. Plus we get to help out people like you who are backwards in the market or close to deperate to sell their homes. Would you like for me to tell you how it works?"
Florida FSBO Seller: "Sure, I am interested in selling my home, but I am skeptical...I don't want to do anything illegal."
Mortgage Wizard: "Everything is legal. I am in the business of making deals happen, not to watch somebody get into trouble. Here's how it works...I can close the deal in 30 days, no mortgage contingencies. Your ad says you have your home priced at $399,000 but have an appraisal for $485,00...is that actually true?"
Florida FSBO Seller: "Yes unfortunately it is true...my mortgage has doubled and so have the taxes/insurance and I just need to get this sold before I go broke.....so, yes.....I am willng to take less than the appraisal"
Mortagage Wizard: "Good. I've had my in-house appraiser do a pencil appraisal on your home and he is coming up with $495,000. If I can get an appraisal for $495,000 I will buy your home for the $399,000 you are asking. Actually, I will write up the first contract with you, but will have the right to assign it to one of my investors. The sales price will be $485,000 ...but you will net the $399,000 you want."
Florida FSBO Seller: "Wait a minute...I'm ok with the assignment part....but I don't understand how the money part works"
Mortgage Wizard: "Well I also own a property management company and I will be renting and managing the property for the investor. You will net your current asking price and agree to allow everthing above that price to be directed to my management company so I can continue to keep the place looking nice, get it rented and have a reserve in case any big repairs come along. I'll even pay for your doc stamps, etc. on the part of the sales price that is above the $399,000. It's a win-win"
Florida FSBO Seller: "I understand that I get what I want...and if you can close in 30 days with no mortgage contingency, that would be wonderful, but this doesn't seem legal to me."
Mortgage Wizard: "Everything is legal. I've done 10 of these deals in the last month...everything is documented and all parties agree to it. You will have no legal issues to worry about on that end. Now, would you like to get the burden of your home sale off your back or do you want to go bankrupt? Think about it and give me a call back."
SELLER BEWARE?? HAS THIS BEEN GOING ON IN FLORIDA FOR AWHILE?? It's a new one on me! I'd like to hear opinions from Realtors, Mortgage Brokers and Real Estate Attorney's ...as well as Consumers on this one. What do you think about this sales pitch? How would you advise the Seller? Is it really legal? Have you run into this guy or one of his cousins? Seller Beware!