Homeowners Beware of "Investors"

When you are behind on mortgage payments or have filed a Chapter 13 case, you will likely receive correspondence and sometimes, boldly enough, personal visits from folks that likely do not have your best interest in mind. They usually call themselves or are connected to “investors”. They may explain to you that they can help you keep your home or can buy your home without the expense of a realtor. What these investors likely interested in doing is obtaining the deed to your home. In many occasions they will leave you with the mortgage debt while they talk you into letting them own your home. For example, the investor may say the while they or a trustee holds the deed to your home, you are able to make “rent’ payments for a year. After the 12 months, you will have an opportunity to purchase the home back. The obvious end game is to keep the deed to you home and leave you with nothing. Here you may not only lose your home but the hard earned equity in your home as well. They may try to buy your and home with the sales pitch that they can save you money by not using a realtor. In some areas, especially in parts of Northern Virginia, properties sell very quickly with a realtor and you likely be amazed at the price you receive on the open market. Remember, an investor may not have your best interest in mind and the price you maybe quoted will likely not be a good as a home sold on the open market. Whenever dealing with these folks consult an attorney that has your best interests in mind.

These investors have sent letters to folks in while in all phases of Chapter 13 bankruptcy: when you file the case, during the confirmation process, and during motions for relief of the automatic stay procedures. If you are in Chapter 13 bankruptcy, and are represented by counsel, have him/her protect your interests by reviewing all matters concerning “investors”.