Selling a Home? Vet Your Buyers Carefully
With the exception of a number of U.S. housing markets many homeowners are still struggling to find buyers for their homes. However, those selling a home need to be careful about letting their desperation getting the best of them.
Many of those selling a home right now are just so happy to find a buyers that caution goes out the window. Unfortunately fraud hasn’t been completely eradicated from the real estate market and contracts are falling apart far more frequently than when times were better. Most homeowners can’t afford to be tied up in a contract for months only for the deal to collapse a couple of days before the real estate closing, especially if a foreclosure is looming.
Losing your home to a scam and still owing the bank for the mortgage can be a lot worse than the situation you are in now. Don’t quit claim your home to anyone offering a foreclosure rescue ‘deal’. Leasebacks can also be frequent scams. If someone wants to buy your home on the cheap and rent it back to you what’s your protection you can stay in the home, the rent will remain affordable and if they are promising to sell it back, what price are they guaranteeing you and where is that in writing?
If selling a home to a buyer who is relying on a mortgage to finance their home purchase how strong of a borrower are they? Do they have a mortgage approval already, how much money are they putting down, are their financing contingencies in the contract realistic and will you retain the right to continue to market the property and take backup offers?
If selling a home to a cash buyer can they prove they have the liquid funds available and can close quickly?