Super Cheap Foreclosed Homes Scam?

Question

Ok so I am wanting to buy / rent / rent to own or whatever soon and have been actively looking. I just saw a commercial on TV that one of those 'The public has the right to access repossessed homes and purchase for as little as $200 / month etc..' (perhaps you've seen) and then it had an 800 number to call.

I've seen other 'repo' type ads that I always assumed were a load. Anybody know it this has any validity at all? Is there really such a way to make a monthly payment that small? Or is this not even worth asking a queston on Answers? Thanks.

Answer 1

this is a take off of an arm.

THEY buy the houses and after you pay these small monthly payments for

1-2 yrs, you are forced up to 3x that amount

which means you paid the mortgage payments for their new loans.

IF you want a good deal, find a BUYER'S

real estate agent and tell them what you are looking for and do not accept any

of their office listings and sign nothing

that gives them anything other than

their commission at close of escrow if you find something.

Answer 2

A $200/mo mortgage payment at 6% fixed interest rate for 30 years would be a loan amount of $33,000.  Assuming you will qualify for an FHA insured loan you may be able to get as much as $2,000 towards down payment assistance and closing costs yielding a purchase price of $35,000.  Now if you can find a suitable property that is in average or better condition for that price, then YES, it is possible.  But you dont need to call an 800 number to get that deal, CAll a few Real Estate offices in your own town and ask to talk with their REO or foreclosure specialist.  Also, remember that you will also have taxes, insurance and PMI to add to that $200 payment.

Answer 3

Scam. There is still no free lunch.