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from: Let Buyer Beware: Foreclosure Buy Back Mortgage LoansOne of the biggest scams out there that a person involved in foreclosures might encounter is the foreclosure buy back mortgage loans. To be clear, there are some honest investors that offer this option too, but it is definitely a case of buyer beware.
You have to be certain you understand the terms of the buy back agreement so that you really do have an option to buy back the property as you assume is the case. Otherwise, the foreclosure buy back mortgage loans offered by some unscrupulous investors can be used to divest you of the home or place you in further debt.
The game starts when a person finds themselves in the foreclosure process. They are often targeted by reputable as well as dishonest investors trying to make a buck off of your predicament. While the honest investor might offer genuine foreclosure buy back mortgage loans, what the dishonest one will do is tell you one thing and have you sign something else entirely. So, be sure to pass any papers you sign by your own attorney if you are considering such a deal.
In the case of foreclosure buy back mortgage loans, you are generally required to sign the deed to your home over to the investor. In return, they might promise to pay off the outstanding balance and allow you to rent the property from them while you get back on your feet.
The problem is that once you sign the deed over, you've lost the house and the odds of you buying it back are pretty slim. They might have very restrictive terms that make it impossible for you to buy back the property or you have to buy it back for far more than you sold it to the investor for by allowing them to pay off your account.
Also, there are dishonest investors that might not pay it back and just use the remaining equity in the house with the deed to go out and get more financing for other deals, leaving you with the bill – if you remain listed as the owner of the house. Either way, the results of such deals are typically that the home owner is evicted, they are fleeced, or they end up buying back the property at a premium. If they really want that particular house and can find a reputable investor, then it might pay for them to do this deal, but it should be investigated thoroughly.
You should have your own lawyer present throughout the deal to review documentation and make sure your interests are being met.
Loans On Foreclosure News
Foreclosures take toll on US homeowners - Financial Times
 Washington Post | Foreclosures take toll on US homeowners Financial Times And foreclosures are expected to hit an all-time high of 3m units this year - despite ramped-up efforts by the Obama administration to bolster loan ... Reports show foreclosures still climbing Snow slows Long Island foreclosure filings Foreclosure rates up by smallest amount in 4 years |
FHA challenged on projected risk to taxpayers - Washington Post
 WNCT | FHA challenged on projected risk to taxpayers Washington Post ... into new FHA-backed loans. It treated those borrowers as if they were trouble-free, even though they would be vulnerable to foreclosure if they suffered ... HUD SECRETARY ANNOUNCES DISASTER ASSISTANCE FOR CALIFORNIA STORM VICTIMS Low cost FHA-backed housing loans likely to continue Can flippers save the housing market? |
Decline In Late Mortgage Payments May Be A Positive Indicator For Foreclosures - NuWire Investor
 PR Web (press release) | Decline In Late Mortgage Payments May Be A Positive Indicator For Foreclosures NuWire Investor "With fewer new loans going bad, the pool of seriously delinquent loans and foreclosures will eventually begin to shrink," Brinkman said. ... 'People get tired, worn out' as they try to obtain loan modifications Government Could Cut Seconds First Will Short Sales Save Housing? |
Real-estate law: Use foreclosure time as your rebuilding season - Orlando Sentinel
Real-estate law: Use foreclosure time as your rebuilding season Orlando Sentinel What I'd like to know is that with so many programs now to help people modify their loans and "avoid" foreclosure, why has no one addressed helping those ... Home Foreclosure Rates Slackened in February, But Misery Remains Real Estate News Homeowners get another rescue offer |
New round of foreclosures threatens housing market - Washington Post
New round of foreclosures threatens housing market Washington Post That earlier wave, which precipitated the financial crisis, consisted largely of subprime borrowers who defaulted when their risky loans became unaffordable ... |
Mortgage audit won't help loan modification efforts - Bankrate.com
Mortgage audit won't help loan modification efforts Bankrate.com The audit serves as the negotiating tool in getting their loan modified." Foreclosure, she points out, involves a lawsuit, "and that means going to court, ... |
Fewer People Late Paying Mortgage - New York Times
 Los Angeles Times | Fewer People Late Paying Mortgage New York Times The percentage of loans in foreclosure went up in the fourth quarter, rising to 4.58 percent from 4.47 percent in the third quarter, the Mortgage Bankers ... Foreclosure crisis: A long, painful exit Mortgage delinquencies may be peaking, but housing market far from normal Fewer Americans fall behind on home loans as foreclosure crisis begins to ebb |