What’s the difference between an ethical wholesaler and one who isn’t acting in the homeowner’s best interest?
An ethical wholesaler is transparent, explains all of your options, and ensures you understand the process before moving forward. Unethical wholesalers may pressure you into quick decisions, hide fees, or fail to disclose important details that impact your home and finances.
What is the recovery process?
In the first 30 days after the date of sale, the Trustee works on getting their client (the bank) paid.
Is this a scam?
NO, but you could be scammed by a predatory or inexperienced company.
When a property sells at a foreclosure auction for more than is owed to the bank, the owner before the sale is owed the difference (minus any other liens or encumbrances).
How do I know if a wholesaler is offering me a fair deal?
A trustworthy wholesaler will provide a clear explanation of how they calculated their offer and won’t discourage you from seeking independent advice. If you’re not allowed time to review paperwork or compare offers, that’s a red flag.
How can I identify a predatory company?
There are a lot of predatory companies that would love to steal 30-90% of your hard earned equity. You just had the loss of your home and they are ready to pounce. A few signs of predatory companies:
- They pressure you to sign immediately.
Take your time and get educated before you make a rash decision. You have time to decide. Most Trustees will not even touch your file for 30 days. There isn't any reason to rush to sign today. The company you choose will be handling thousands of your dollars. Make sure you choose a trustworthy company.
- They don't leave you a copy of the documents you signed.
You need to keep any legal documents that you sign. A great company will not only give you a copy of the paperwork, they will insist on reading through each page to be sure you understand what you are signing.
- They bought your house.
Now they want to get "their" money back by overcharging you. I would only trust a 3rd party who is not involved in the sale of your home.
- They don't specify the total amount they are charging you.
They may not specify what "legal fees" will be charged. A great company knows from day one what the cost of the recovery should be. They should be clear about what fees and costs will be charged to you.
- They are a "national company".
Predatory companies try to do a bunch of business everywhere. A great company works only in states where their legal team has a good relationship with the Trustees. That relationship is the most important factor in getting a speedy recovery.
- After you sign, they never answer your call.
Most predatory companies have awful customer service. Our sales reps, owners and attorney are readily available to receive your calls and answer any questions you may have throughout the entire process. The only time a predatory company will reach out is after they have been canceled.
- They trick you into never seeing the actual amount they received from the Trustee on your behalf.
Predatory companies will have you sign a Power of Attorney that includes the power for the company to sign the Hold Harmless Agreement sent by the Trustee to you. This document states the exact amount of money the Trustee is releasing on your behalf. A great company will insist that you personally sign the Hold Harmless Agreement in order to have complete transparency.
- They will offer you money to sign.
Many people will accept a few thousand dollars only to give up tens of thousands of dollars, because they are desperate. Don't fall for this scam.
Are there risks of working with a wholesaler who isn’t an advocate for me?
Yes. Some wholesalers may undervalue your property, use complex contracts to lock you in unfairly, or prioritize their profit over your financial outcome. Always make sure your wholesaler has a track record of helping homeowners, not just investors.
How do you identify an incompetent or inexperienced company?
- They have many predatory traits.
There are many incompetent companies. They might have just bought a “get rich” system and think they can make a ton of money helping you with your recovery. Most have failed at other businesses and think they can just copy some docs and get you to sign them. Then they hope the money will magically appear without realizing how the recovery process actually works.
- They don't use an attorney for the recovery.
A great company will not only use a local attorney to recover your money from the Trustee, they will be able to get that attorney on the phone to answer any of your questions.
- Our attorney is the only one who touches your money.
If any fraud is committed, you can contact the state bar and file a complaint. You can’t have true security and transparency without an attorney. Someone could start a company today and close it tomorrow after they steal your money.
- They can't fully explain the process.
Being able to talk with confidence about the business process comes from experience. If it sounds like they are just making stuff up as they go along, hang up and block their number.
- They haven't done many recoveries.
Starting a new business brings lots of challenges and learning experiences. You don’t want someone learning how to do this on your case. You need the most money recovered at the quickest time frame possible.
- They can't tell you anything about the Trustee, other than their name.
All Trustees are different. A great company or lawyer can tell you how fast or how slow this Trustee may be. The relationship between our attorney and the Trustees is one of our most valuable assets.
What should I ask a wholesaler before signing anything?
Ask them to explain their process step by step, how they make money, and whether you’ll have legal representation. If the wholesaler avoids these questions or becomes defensive, proceed with caution.
Why is working with a foreclosure advocate safer than working with just any wholesaler?
Foreclosure advocates focus on protecting your best interests, not just flipping your home for profit. We combine advocacy with wholesaling options, giving you access to buyers and recovery services while ensuring transparency and fairness.
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