Investment companies buying houses (agent, price, claim, value)

[kettle80]

My husband and I moving to another state in about a month and need to sell our house. We are about to list our house with a local real estate agent but we've also come across several websites like SellThisHomeToday.com, Offer In 24 Hours, etc. claiming they buy houses from you really fast. Has anyone had any experience with this type of companies? Are they legitimate or it's just a scam and not work considering?
I also have another question. What if we sell a house for less then our bank loan and we end up owing some money to the bank, how do we pay that? Do they give you some time to come up with the money or it's due at the closing? Thanks anyone who can answer my questions. We are under so much stress these days. Selling a house and relocating is not easy!

[BobKovacs]

Some of those companies are scams, but the majority are legit. Bear in mind though, that they'll buy your home for cash, but not the same amount of cash you'll get selling it yourself. Those firms make money by buying at 50-60% of market value, then doing a quick cleanup and flipping the house at 80-90% of market value so they sell it quickly. It's all about buying cheap and selling fast.

As far as owing more than you sell for, you're going to have to come up with that money at closing- there's no grace period.

Bob

[olecapt]

Originally Posted by kettle80

My husband and I moving to another state in about a month and need to sell our house. We are about to list our house with a local real estate agent but we've also come across several websites like SellThisHomeToday.com, Offer In 24 Hours, etc. claiming they buy houses from you really fast. Has anyone had any experience with this type of companies? Are they legitimate or it's just a scam and not work considering?
I also have another question. What if we sell a house for less then our bank loan and we end up owing some money to the bank, how do we pay that? Do they give you some time to come up with the money or it's due at the closing? Thanks anyone who can answer my questions. We are under so much stress these days. Selling a house and relocating is not easy!

Think about it. Why do they do it? Generally they offer 75% or less of fair market. No scam...just a low price. Anything other than a standard closing is likely a scam. Walk away.

Selling for less than owed is a short sale. The bank would love you simply to pay it at close. If not you have to make an arrangement with the bank in advance. They will often take a note for the balance.