A new trend is occurring at an alarming rate- “investors” offering you money for your house during foreclosure advertising that you can walk away. They advertise that it will “stop foreclosure.” The promise you to walk away free and clear. They litter sites like Craigslist preying on the uneducated in the legal system. They typically all have the “$” symbol in the ad title as well.
Recently the Florida 2nd District Court of Appeal (DCA) ruled on a case like this. A homeowner sold their house during a foreclosure, likely to one of these “investor scammers.” The third party purchaser tried to substitute in as the real party in interest in the case or to intervene, saying that the homeowner has sold them the property. The court denied this.
The court further did not allow this third party purchaser from participating at trial because they were not a party to the case and entered judgment against the likely unsuspecting homeowner.
The third party purchaser appealed the judgment and the bank moved to dismiss the appeal. The 2nd DCA found that the appeal must be dismissed because the third party purchaser was not a party and lacked standing.
So end result is there is a money judgment, and potential deficiency judgment, against this homeowner who took a few thousand bucks cash and disappeared. This investor likely leased out the property and recouped much more than he/she paid out to the homeowner during the time the case and appeal ran.
These types of arrangements are purely scams, do not fall for them. These investors don’t care about you our your home. Their interests are to pay you as little as possible renting out your property and ending up with a net profit at the end of the day when the bank takes your house away; leaving you on the hook for a possible 5-6 figure deficiency judgment.