Cash For Houses Lagos Nigeria - Free Cash For Homes Tips.
Beware of Fraudsters. Avoid Fraudulent Schemes
What is cash for homes or cash for buildings or houses?
Why would any right-minded property owner accept cash for houses deal?
Cash For Building Deals - Two Scenarios You Might Face
Let's take the first scenario.
Scenario 1: You have a house in Lagos (or somewhere else in Nigeria) but you have cash problems. You want to start a business so that you can generate regular income to meet your family obligations.
However, the amount of money you need to start the business you're passionate about and that will generate a sizeable profit every month is big. You have tried borrowing from friends and relatives, but no one is willing to release to you the investment capital you need.
Now, you have found a suitable borrower who is willing to give you cash. But he is asking that you use your house as a collateral for the loan.
That is the scenario. I am sure you understand the situation, even if you're not currently in the situation described above.
If you're currently faced with the above dilemma, you understand perfectly how tough your decision is.
Scenario 2: A commercial bank has a new mortgage product they have been advertising on TV. They are asking members of the pubic to come forward and sign-up for this new housing product.
What they offer is simple enough.
They are asking the members of the public who are home owners to use their current houses as collateral to get mortgage loan to buy themselves new house.
"Use your house to get yourself a new house!" They scream
Looks fair enough, right?
Cash For Homes - Beware of Losing Your House!
Let's analyse the two cash for houses scenarios above.
In scenario 1, a home owner wants to stake her house for money to do business.
The first problem with this is that a house is a solid and reliable investment while a business may or may not be successful.
The reality is this.
When you start a business, there is no guarantee that the business will be successful. With a business, there is no guarantee that you will make profit month after month. And when you don't make good profit month after month, how will you make the loan repayment month after month?
Remember . . . if you default on the loan repayment, the loan lenders will seize you house. And you just may become homeless. At the very least, you may lose your house.
Here's the truth.
Over 70% of new small businesses fail. Therefore, there is no guarantee that you will be successful.
Even if your business generate profit, there is no guarantee that the profit will be sufficient to pay the principal and the interest month after month, especially since it's a new business with little or no clientele base.
Putting your house on the line to start an uncertain business is risky.
So, what's the best thing to do to generate capital to start a business?
Well, you already own a house, right?
That house is a solid investment that is worth a sizeable amount in the open property market.
Sell the house and buy a cheaper one. Then use the difference as your business startup capital.
For example, if your house is worth 10 million Naira, sell off the house. Then buy a house worth 6 million Naira.
When you do this, you will have 4 million Naira available to you to use as the startup capital for your business.
This strategy is much better than getting yourself enslaved by a cash for house deal because . . .
1. You do not pay any interest on your startup capital when you use this strategy. So, your profit increases by this margin.
2. The risk of losing your house in the event of loan repayment default is completely eliminated and
3. You have complete peace of mind because there are no worries or nightmares about losing your house to some greedy lender
Banks Offering Cash For Home Schemes
Usually, when a commercial bank offers mortgage to her clients, the houses bought with the mortgage loan become the collateral for the loan.
In fact, when you take a mortgage from a commercial bank or a mortgage institution in Nigeria, the mortgage institution or bank pays the property sale price (also the mortgage value) directly to the seller and not to you.
The mortgage buys you a new house.
Here's the twist.
The real estate attorney appointed by the bank draws up a purchase contract that reflects that the house is under mortgage. That is, it is jointly owned by the bank and the borrower. And the bank keeps the original documents.
In additional, the land registry of the state government where the property is located is notified that the property has a mortgage facility on it. Therefore, you cannot legally sell it.
Since this is the case, why would any commercial bank or mortgage institution market cash for houses mortgage deal that requires home owners to get a mortgage facility where the collateral is the current house of the borrower and not the new house bought with the mortgage loan?
This doesn't sound right.
Unless there are some special benefits attached to this kind of cash for houses schemes (offered by reputable mortgage institutions) . . . and the benefits are worth the value of your current house . . . there is no sense in signing up for such a scheme.
In summary, remember that fraudsters are everywhere.
If you lose your guard, you just might lose your cherished asset . . . your house.
Beware of real estate fraud! Beware of fraudsters!
P.S: Read this real life story and see how one property owner in Lagos Nigeria was conned by fraudsters into a cash for houses deal. Do not fall for similar tricks.
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