Q: My friend is trying to buy a house from a man who says that he owns a HUD house. He wants $80,000 for the property, with $500 down. The house looks like it should sell for $100,000 or more.
He asked my friend to fax a copy of his ID and social securitySocial Security provides retirement benefits, disability income, and MedicareMedicare is a program of Hospital Insurance (Part A) and Supplementary Medical Insurance (Part B) protection provided under the Social Security Act. for working individuals and their spouses. Under the Social Security Act of 1935, the government established social security and created the Social Security Administration to administer the program. card to his office. I just don’t believe this is real because it’s too good to be true. Who can my friend contact to see if this house is for sale without being scammed?
A: This deal has scam written all over it. First, HUD homes are regular houses with FHA loans on them that have gone into foreclosureForeclosure is the legal action taken to extinguish a home owner's right and interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds. in a property, so that the property can be sold in a foreclosure sale to satisfy a debt.. HUD sells HUD homes online and HUD-certified real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. agents can make offers for buyers online.
Can you see what’s wrong with the situation your friend is facing? And, I probably don’t need to tell you that you’d never have to fax any legitimate real estate agentAn Agent is an individual who acts on behalf of a consumer. A real estate agent represents a buyer or a seller in the purchase or sale of a home. Licensed by the state, a real estate agent must work for a broker or a brokerage firm. An insurance agent helps a consumer purchase an insurance policy. Insurance agents are also licensed by the state.A Real Estate Agent is an individual licensed by the state, who acts on behalf of the seller or buyer. For his or her services, the agent receives a commission, which is usually expressed as a percentage of the sales price of a home and is split with his or her real estate firm. A real estate agent must either be a real estate broker or work for one. your contact information or Social Security information – that’s just asking to have your identity stolen.
Your friend needs the help of a really smart real estate agent who is HUD-certified and probably the assistance of a real estate attorneyA Real Estate Attorney is an attorney who specializes in the purchase and sale of real estate.. Is the person offering the home to your friend a HUD-certified real estate agent? The agent can look up the property and tell you if it is for sale or not and show your friend some other properties in the area that are a good deal at the same time.
The attorney can do all of the due diligence necessary to make sure this deal of a lifetime isn’t really a scam, and can also help put together the documents your friend will need to get a loanA Loan is an amount of money that is lent to a borrower, who agrees to repay it plus interest. and close.
Just remember, if it doesn’t smell right to you at this pointA Point is one percent of a loan amount., it probably isn’t right for you. Good luck to your friend.