Re: Why? - Posted by Jim FL
Posted by Jim FL on May 15, 2006 at 16:18:07:
I actually personally know one of the victims in this story, and no, won’t say which one.
Sadly, I met them AFTER they fell behind on their mortgage, and deeded the house to these investors.
Because I have talked to them, and looked over their paperwork, I do know in my heart, that these ‘investors’, mislead folks, or at the very least, did not disclose everything very well.
The paperwork involved was, to say it nicely, very amature, and rather convoluted.
They seemed to prey on those who were not extremely literate, and would verbally tell them one thing, with the docs stating another.
I too doubted the fraud claims against the investors, at first when I heard about the story locally.
Simply based on my own experience with multitudes of pre-foreclosure sellers who had problems solved, were grateful, and once solved, seem to feel cheated when they learned the end investor made a profit.
That was certainly not the case with my friend who deeded their home to these ‘investors’.
Bottom line, new legislation is not needed, but, it probably will happen somewhere down the road, as it has in other states.
I’m not worried much, as long as whatever is drafted is watched closely, and written well.
Just don’t allow sellers to remain in the house, and you’ll be fine.
I’ll even admit, I’ve been frustrated with these types of investors myself, when I meet sellers who have called more than one advertisement…and heard before me, “sure, we’ll stop your foreclosure, and you can remain in the house, and buy it back later, also, here is some cash now to help you sign…er, I mean, start over your house/life.”
I even got to the point where I’ll tell sellers, straight out, “yes, I will buy your house, solve the problems related to it, BUT, YOU MUST MOVE OUT…and here is why?..”
Then explain to them, sure, some folks very well might, or perhaps already have, offered to help you, and allow you to remain.
the thing is, I know this fails, 99% of the time, and I’m here to solve your problem, not help you create more so I can profit.
Anyway, these guys did make promises, knowing ahead of time the sellers would ultimately fail, or at least, should have known, and for that reason, should be stopped.
The only reason it gives all investors a bad name, is because its covered by reporters who’d rather tell you “there are 300 investors in the tampa area offering foreclosure relief”…than, out of the 300 active pre-foreclosure investors in Tampa area, there are a few/small percentage, that prey on people"
Which one makes a better headline?
We’ll always have to deal with scum mucking up the water in our investing world, but as long as you perform, and act ethically, and smart, things will be fine.
Just my two cents, keep the change,
P.S. I personally, will not buy a house and allow the seller to remain in it, period.
Now, I have bought occupied rentals, but that is different.