Why so many buyers contact you

Probate filings, foreclosure notices, code enforcement liens, and delinquent tax lists are public records, and investors use them to find owners who may want to sell. Being contacted doesn't mean anything is wrong with your property. It usually means the property showed up on a list.

That's also why scammers target the same owners. People under financial or family pressure are more likely to act quickly, and quick decisions are what a scam depends on.

1. They ask you for money upfront

A legitimate buyer doesn't charge a seller an application fee, a processing fee, or a fee for their own inspection. Any costs the seller owes are paid at closing from the sale proceeds, and they appear on a written settlement statement you can review before you sign.

2. They pressure you to sign today

"This offer expires in an hour" is a sales tactic, not a real deadline. A genuine offer can wait while you read the contract, ask questions, and talk with family or an attorney. If a buyer won't give you that time, walk away.

3. The offer isn't in writing, or it doesn't match what you were told

Everything that matters should be in the written contract: the price, the closing date, who pays which costs, the deposit, any inspection period, and what happens if either side backs out. If the paperwork is missing something you were promised, the promise doesn't count.

4. They want the deed before you're paid

In a normal sale, you sign the deed at closing and the title company or closing attorney pays you at the same time. Be very cautious of anyone who asks you to sign a deed early, sign one outside a closing, or deed the house over in exchange for "taking over your payments."

In a take-over-payments arrangement, the mortgage generally stays in your name. If the new owner stops paying, the missed payments and any foreclosure can still land on your credit. Talk with a real estate attorney before agreeing to anything like this.

5. Payment or wiring instructions arrive by email or text

Criminals impersonate title companies and send fake wiring instructions, hoping to redirect a closing payment. Before you send or receive money by wire, call the title company at a phone number you looked up yourself, not one listed in the email, and confirm the instructions verbally.

6. They promise to stop your foreclosure for a fee

Some people pose as lender representatives or claim a connection to a government program, then charge a fee to "save" the home. Be skeptical of anyone who asks for money to negotiate with your lender, tells you to stop talking to your lender, or asks you to make mortgage payments to them instead of your servicer.

HUD-approved housing counselors can explain your options, and their help is often free.

7. The contract has terms nobody explained

Read the fine print, or have an attorney read it, and look for:

  • A long inspection period that lets the buyer cancel for any reason while your property sits off the market
  • A deposit that is refundable under almost any circumstance
  • An assignment clause that lets the buyer transfer the contract to someone else. These are common in investor contracts, but you should know who is actually buying and closing.
  • A closing date that can be pushed back again and again

What a legitimate sale looks like

  • A written offer you can take time to review
  • An independent title company or closing attorney that you can look up, call, and verify
  • A deposit held by that title company or attorney, not by the buyer
  • No out-of-pocket fees from you
  • A settlement statement showing every cost, reviewed before you sign
  • Payment at closing, when you sign the deed

If something already feels wrong

Stop and don't sign anything else. Call the title company directly, and check your county recorder's records to see whether any document has been recorded on your property. Many county recorders and clerks also offer free alerts when a document is recorded under your name.

You can report fraud to the FBI's Internet Crime Complaint Center, the Federal Trade Commission, and your state attorney general.

Frequently asked questions

Is it normal for cash buyers to send letters or texts?

Yes. Investors use public records to find owners who may want to sell. Being contacted is common and not a sign of a problem. Just verify who you are dealing with before you share documents or sign anything.

Should I ever pay a fee to a cash buyer?

No. Any costs the seller owes are paid at closing from the sale proceeds and listed on the settlement statement. A request for money upfront is a warning sign.

How do I verify a title company?

Look up the company yourself instead of using contact details the buyer gave you, and call to confirm they have an open file for your property and are holding the deposit. In most states, title agents are licensed by the state insurance department, which you can check online.

Sources

This post is general information, not legal, tax, or financial advice. Laws change and every situation is different, so talk with a qualified professional about yours.