Last year, hundreds of people in the Denver area took the drastic step of deeding their houses to a special kind of real estate investor who hopes to profit from those who can't make their mortgage payments. Some were paid thousands of dollars to hand over a house. Some didn't get a dime. Few got what their houses were worth. People are getting fleeced every day out of a lifetime's worth of equity.
Foreclosure investors say their business draws unfair criticism.
They say they often serve as a last resort for the homeowner who waited until it was too late to refinance or sell the house, who couldn't get a loan, who refused to consider bankruptcy. You buy them time. They can stay there for six months. We pay their moving fees. We give them an outlet.