Ontario woman says using 'cash for houses' company was costly mistake
Ontario woman says using 'cash for houses' company was costly mistake
Laurie Thompson admits she needed to sell her townhouse in Smithville, Ont., fast.
The pandemic had done a number on her finances — the bar where she worked had shut down, twice — and rising interest rates meant her monthly mortgage payments of $2,000 were going to almost double last January. Thompson was facing foreclosure.
"I was desperate," she told Go Public.
Thompson had seen street signs and posters in her neighbourhood — companies offering to pay quick cash for houses. She'd even received what appeared to be a hand-written flyer in the mail, advertising a hassle-free cash sale — no renovating, open houses, or Realtor commissions.
She hit the internet and found a company with positive reviews and attractive promises called Honest Home Buyers Incorporated (HHBI), based in nearby Hamilton.
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Yup.
Thompson knew this option meant she wouldn't be offered top dollar, but figured it was worth getting the house sold, quickly.
Do you have a link saying she owned multiple homes?
No,
I was just agreeing that she understood the risks associated with selling the house faster through one of these programs, rather than the normal processes.
The grievance about the contract being unilaterally renegotiated from 575 to 550 is valid. The greivance of "lost profit" is not.
Also, the $60k figure of "lost profit" doesn't consider realtor and closing costs. On $610 those costs would be $35k, so she has a true "lost profit" of $25k. Again a cost she knowingly and willing assumed without coercion.
This woman owned more than one home and could no longer afford one of them due to interest rate changes.
I have reread the article multiple times and can't find anything that said she owned multiple homes. Where did you get that info from?
That's fair, as it was an assumption on my part, but I figured it was a safe one. There's little advantage to getting out of a mortgage for your own home as the alternative is renting, where you basically hemorrhage cash. Unless you earnestly believe that rates will come way down in the very near future, selling your home at a loss is rarely a good idea.
If however it's an additional home, then cutting your losses is much more reasonable as you can take the process and dump it into your actual home.
Assumptions make an ass out of u and me.
Well, to be fair, they mostly just made an ass out of him…on your side it just resulted in wasting time trying to figure out what he was talking about. If you had repeated his assumption it would have put you in the same spot.
I think the correct phrase is when you assume it makes you an ass. Not quite as clever, but more accurate.
I think the correct phrase is when you assume it makes you an ass.
It's an old-timer's play on the spelling ... ass-u-me.
But you're right. If I would have believed it, then I would have been an ass as well.
That’s a big assumption there, and I think people are going to find out just exactly how hard it is to compare renting to owning after this ridiculous bubble again. Renting isn’t any more expensive than owning, you just don’t end up with equity….which sounds like a horrible trade off in view of the crazy bonus homeowners found in this market where the equity jumped ridiculously upwards. But all these guys have the chance to see their investment turn upside down and the equity will look more like a noose than a pile of cash.