Selling my home to investors (Advice needed)

Here is the situation: I filed chapter 7 bk in January of 2005, got it discharged in April of 2005. I did not reaffirm my home but have been making payments snce then. I am in the process of selling my home so I can get a down payment for a mortgage on a different property I am interested in buying.
I got a call from an investor tonight that offers the following program:
They would give me a large amount of cash as a down payment for their purchase of my property (let's say $20-30K), would take on the current mortgage payments until they sell my house. Then, when my property is sold, they would pay me the rest of the purchase price, $130-140K. The only thing they are asking is for me to sign my title over, title to be held in escrow or in a Trust account. Now, since I am not liable for the house as I did not reaffirm it, what would happen if this investor failed on making the payment? Would the bank foreclose on the property, and if so, who would be liable for the foreclosure? My educated guess is that the investor would let the payment default, and then offer to buy the property from the bank at a lesser price that the one they would offer me since they would already be in posession of the title.
I am pretty sure this is a scam, but I would like a second opinion.

Here is the situation: I filed chapter 7 bk in January of 2005, got it discharged in April of 2005. I did not reaffirm my home but have been making payments snce then. I am in the process of selling my home so I can get a down payment for a mortgage on a different property I am interested in buying.
I got a call from an investor tonight that offers the following program:
They would give me a large amount of cash as a down payment for their purchase of my property (let's say $20-30K), would take on the current mortgage payments until they sell my house. Then, when my property is sold, they would pay me the rest of the purchase price, $130-140K. The only thing they are asking is for me to sign my title over, title to be held in escrow or in a Trust account. Now, since I am not liable for the house as I did not reaffirm it, what would happen if this investor failed on making the payment? Would the bank foreclose on the property, and if so, who would be liable for the foreclosure? My educated guess is that the investor would let the payment default, and then offer to buy the property from the bank at a lesser price that the one they would offer me since they would already be in posession of the title.
I am pretty sure this is a scam, but I would like a second opinion.

My personal rule sorting out what's a good deal and what could be a scam is that if it sounds too good to be true, it's a scam. This has scam written all over it.

Don't do it. Just list your house and make an offer on the other one with the condition that your house sells. Talk to your realtor, if they're too stupid to know how to do this, get another one, fast.

Don't do it. Just list your house and make an offer on the other one with the condition that your house sells. Talk to your realtor, if they're too stupid to know how to do this, get another one, fast.

I agree. That whole deal just sounds like bad news.

Here is the situation: I filed chapter 7 bk in January of 2005, got it discharged in April of 2005. I did not reaffirm my home but have been making payments snce then. I am in the process of selling my home so I can get a down payment for a mortgage on a different property I am interested in buying.
I got a call from an investor tonight that offers the following program:
They would give me a large amount of cash as a down payment for their purchase of my property (let's say $20-30K), would take on the current mortgage payments until they sell my house. Then, when my property is sold, they would pay me the rest of the purchase price, $130-140K. The only thing they are asking is for me to sign my title over, title to be held in escrow or in a Trust account. Now, since I am not liable for the house as I did not reaffirm it, what would happen if this investor failed on making the payment? Would the bank foreclose on the property, and if so, who would be liable for the foreclosure? My educated guess is that the investor would let the payment default, and then offer to buy the property from the bank at a lesser price that the one they would offer me since they would already be in posession of the title.
I am pretty sure this is a scam, but I would like a second opinion.


These people would not be doing this if there was nothing in it for them. You are better off selling your house on the market rather then signing over the title to someone else. I would never let someone make my payments on my loan for me.

If the Investor is late or does not make the payments on the house, your Lender will Foreclose.

At a Foreclosure Auction, the house gets sold to the highest bidder. The Lender has a base amount they have to get. Your loan, plus all lates, penalties, interest, fees, and costs to Foreclose. If your Investor bids enough, they'll pick up your house at the Foreclosure Auction for a song and resell for huge profit.

Investors aren't your friends. They're in the biz to make money.

If you do this deal with this Investor, structured the way you described, probably the only $$$ you'll see is the money you get paid up front. I'd be very surprised if you ever see the $130K-$140K on the backside of the deal.

fred834,

What is the market like in your area? If houses in your area sell shortly after listed, you could probably sell it quickly without the use of an investor.

I think this is a scam as well. These are predatory type scams you really should avoid, as far as everything I have heard or read.

Did they contatct you online?

This is a scam. There was a big thing about people doing this a couple of years back.

Regardless, pass on this offer!

Yeah, I think it's a scam too. Sign over the title and watch us walk away with your house. If you sign over the title or deed you no longer own the house and it becomes their house, so there is no guarantee that you will be paid. I say don't do it, it's a scam.

Real private investors can close on the property without the "creative financing" that your being offered. There are a few companies around here that do that. They will offer you just under market value if your property is worth it. You close like any normal settlement. Everything is transferred and you walk out with a check. I've had 2 friends that sold their homes this way due to a workl transfer.

HELLO SCAM..................... GUARANTEED.........

Legal, but works for them investor real well................ Homeowner is the one who suffers all the loss and expense......



BEWARE.............