Jennifer – Apr 21, 2020
Victim Location 53913
Type of a scam Investment
A woman drove to our home after seeing it had been for sale. She pulled in the driveway but our dog met her and she left. That same morning she called and left a message wanting to get information about our home. I returned her call and talked in length about how she wanted to buy it and she agreed to what we were asking for it. They buy fixer uppers and thought ours would fix up well. She said it is much quicker to receive the money with them buying the home, through an investor, than it is going through a bank. She said she would email an offer for us to look at and I received it 2 days after talking with her. She sent us an Assumable Note Contract which shows me that "they will pay off the Note with an initial ‘Binding Contract Payment’ of $1,000 and agrees to make monthly installments of $1000 and then a Specified Balloon Date for the remaining amount. It shows that the Buyer pays all taxes, insurance and utilities. Also, will cover all costs of repairs, maintenance, and improvements". It also says "the Insurance will cover the Loss Payee Beneficiary Listed and then the remaining proceeds will go to the Seller, ‘Up to’ the agreed remaining payoff amount.The buyer will then restore, repair, upgrade and maintain the landscape and curb appeal, all kitchen/bath/flooring and fixtures at their expense. while complying with all the laws, rules and ordinances of the Dept. Of Building, Zoning, Assessments and Inspections".They will do all this work "to immediately list back on the MLS Market for the investment and re-sell within on or before 6 months after assuming the Note". "After 15 days of signing the end loan payoff, terms will be set". After the Note is signed, the Seller has 15 days to withdraw the Note and there are a couple other defaults mentioned. At the end of this Assumable Note Contract, there are Real Estate Broker Fees of up to 6% for the Seller and 0% for the Buyer.
I questioned her on this "Contract" and her response was "This is simply an instrument for the investors to re-cap on their investment, due to economy conditions, and the banks would want certain things done to the property before funding, etc. So, after you sign it, basically we have 15 days or less to close, or you get to cancel everything. Expect a 5 day closing after Title work, that’s how fast this goes. Then he can sell his Note and recap, no one asks about the property, as is."
My husband and I talked about it and was thought it was really strange that this company would pay full price for our home, fix it up and re-sell. So, I talked with her about the Assumable Note Contract and the email she sent indicating the Note would be "simply an instrument" not what would actually happen. She answered my questions but I’m assuming with empty promises. I then texted her that night and said that we would need an Offer to Purchase from them in order for us to sign anything from them. She didn’t respond to that text. I also sent her an email message the next morning just verifying she received my text the night before, and she didn’t respond to that either.
Another thing, I searched for Zoroxx Enterprises, LLC and the only thing appearing is a 4min YouTube video how the investing works. I looked up their address and they are not there. There’s a mini mall area and no Zoroxx Enterprises, LLC