Hi, good morning. This is Tom Heath with the Mortgage Guidance Group at Nova Home Loans, and this is our weekly installment of mortgage and real estate related matters. Today., I just wanted to bring up a potential conversation to have with your current and past clients. I’ve been made aware of a company out of Florida that’s operating in many states that is offering cash payments to homeowners, $300 to up to $5,000, with the agreement that the real estate company has the exclusive right to list their property for the next 40 years. So it’s a 40 year listing agreement. There are some cash paid upfront to the homeowner, and then the real estate company puts, in essence, a lien on the property that will stick with that property, even if it transfers to other ownership through probate and the like. There are minimum amounts that need to be repaid, and there is no cap on the commissions that can be earned. It’s based on a percentage of the sales price and all that is outlined in the agreement.
This might be a good opportunity for some homeowners to get some really quick cash, but then they are tied with this real estate company for the next 40 years. The three instances that I’m aware of, in all three cases, the homeowner indicated they weren’t fully aware of what they were signing. So it might be a great opportunity for you to reach out and just touch base. Make sure people understand that, as times get a little bit tough and there’s a need for a quick confusion of cash, please read all that fine print before you sign anything or create anything. Especially if it comes to a matter of the home or real estate. They should reach out to you for a little bit of input as well.
If you have any questions on this, if you’d like to see the specifics of this company, there’s a news story out of Florida that I could share with you. Just reach out to me, contact us through our website, email us, check it out. If you have any questions, don’t hesitate to reach out on this or any other topic. And as always, if you have any suggestions, let us know. The best way to contact us is either email or website MGGroupTucson.com. Thanks. Bye.