Buy house for cash transactions are a popular choice amongst sellers and real estate investors. Making cash offers can expedite real estate sales because buyers do not have to wait for preapproved financing.

Buy house for cash deals are also becoming a popular option for borrowers facing foreclosure. Locating a buyer willing to purchase their house for cash may allow mortgagors the opportunity to obtain short sale approval from their lender.

Many borrowers facing foreclosure are desperate to sell their home quickly to avoid the stress and embarrassment of the foreclosure process. But, are these cash home buying businesses legitimate or just another scam?

Mortgagors can avoid buy house for cash scams by taking time to engage in due diligence. The Internet provides an abundance of information and helpful resources as long as you know what to look for. One red flag is when buyers solicit offers to buy your house through the mail or telemarketers.

While some home buying companies and private real estate investors are legitimate, many are scam artists working out of boiler rooms and using disposable cell phones making it difficult for authorities to track them down.

These ruthless scammers hire people to visit courthouses and review public foreclosure records. Each day they scour records looking for Lis Pendens and Notice of Default records entered by mortgage providers. Public records provide information about the homeowner and their property. Buy house for cash investors compile a list of potential properties and begin their marketing campaign.

In order to engage in buying and selling real estate, home buying businesses must be registered within each state where they conduct business. Business license information is often filed through each states Department of Revenue or Secretary of State Office. Business licenses are also a matter of public record and can be easily verified via online search.

To locate any registered business type in the name of your state plus “business license.” For example, to determine if a business is registered in the state of California, you would type in “California business license” to locate the appropriate agency. Once there, you would conduct a search on the business or individual’s name.

In most states, the Attorney General’s Office handles consumer complaints and the District Attorney oversees criminal complaints such as fraud. Check state government websites to see if warnings have been issued regarding home buying companies.

The Better Business Bureau publishes compliments and complaints of businesses which are registered through their agency. Consumers can visit BBB.org to determine if positive or negative comments have been reported, as well as how the company responded to filed complaints.

Another great source for locating potential scams is RipOffReport.com. This website allows consumers to post detailed information regarding companies and individuals who are engaging in unethical or illegal activities.

Buy house for cash programs can offer solutions to homeowners who need to sell houses fast. However, careful consideration should be given and sufficient research conducted. Sales contracts should be drafted by a qualified real estate attorney.

A lesser known option for selling real estate fast is to seek out private investors or investment groups. Many investors buy distressed properties with cash because they can close deals quickly. It is just as important to conduct due diligence when working with real estate investors. Ask for references and follow-up with each contact person.

Conduct research online to ensure you are working with a trustworthy and credible investor. After all, you are selling a very valuable asset and should not engage in risky practices that could place you or your property at risk.

Author Bio: Simon Volkov is private real estate investor who engages in buy house for cash transactions in California, Nevada, Arizona and Washington. If you need to sell your house fast or are looking for foreclosure prevention options visit www.SimonVolkov.com today.

Category: Real Estate
Keywords: buy house for cash,real estate investors,home buying companies,buy house for cash scams