Econohomes Experience

4 Replies

I came across a Craigslist ad for a house for sale in my farm area.  I sent an email and the 'seller' replied with information on how to access the property. 

I went and took a look, and a day or so later, the 'seller' emailed me with a list of other properties that they have for sale in my area.

I ran down the numbers and made offers, via a reply email, on all of them which allowed 3 weeks for closing and a $100 earnest money deposit. 

On Monday, the company called me on the phone to tell me that the gentleman who emailed the list to me, who I replied to, was no longer with the company, so this new lady, "Tandi" was assigned to work with me. 

She told me that they don't pay any back taxes or prorate, so to check with our tax collector before making any offers.  She then went on to tell me that I could either do a "Cash For Deed" (and it could take up to 180 days to get the deed- though some due diligence on the company led me to some old complaints about this company not delivering deeds as far out as 10 months after closing) or a "Warranty Deed" for $2,225.00.  She told me that a 10% earnest money deposit was required, but that they don't force you to buy the house and you can get your earnest money back any time you want prior to closing. 

She instructed that I could make my offer to 'include the fees,' and to do it 'verbally' with her and she would take it to whoever the DM is and if they accepted, then she would write the contract and send it to me. 

So I made 2 verbals with the fee included, both of which they countered on, and only one of which I countered back on-  which they accepted. She asked me what name I wanted the contract in, and I told her my partners name and stressed that it needed to be 'name and/or assigns.'

When I got the contract from here, the $2,225.00 was put on top of my offer, the name did not have 'and/or assigns' after it, and they wanted a closing in 6 days- not 'business days,' just 6 days from the date they sent the contract to me. 

Suffice it to say, I walked from the deal.  I'm not putting up $3,000 for a house that's going to close in 6 days!  And I'm certainly not going to be doing business with a company that can't follow the simple instructions to put 'and/or assigns' on the contract. 

I've read some stuff about this company stealing investors from bird dogs too.  

My opinion- shady company with no integrity.

Also meant to add:

The contract wasn't even SIGNED by the seller!  I hadn't even noticed that.  I just sent it off to my private lender to look over for funding approval, and he emailed back saying he needed a 'fully executed contract.'  That's when I went to look and saw that it was not signed. 

I emailed "Lisa" (the contact who emailed the contract to me) and she said "We will sign the contract once we receive confirmation from the title company that the earnest money has been deposited."

So, they want me to sign something they haven't signed, then go put $3,400 in 'earnest money' with the title company, and then wait for them to sign it, with only 6 days to close, from the day I GOT their unsigned contract. 

Disclosure * "I am not a real estate agent in florida. However, I am currently studying for the real estate licence in Georgia"

Based on what I have learned so far, every contract CAN be assigned Unless the contract specifically states that it CAN Not be assigned.  Consideration must also be taken when the contract is for an owner financed deal where financing is based on the creditworthiness of the individual,   in this case the seller must be notified and they must agree with assigning the contract.

I'm not sure how Florida law addresses assignments, but I've always had and/or assigns in all of my contracts.

They emailed back and said "Apparently, we can't have 'and/or assigns' on our contracts", so I replied "That's an absolute deal killer for me."

Oddly, "Tandi" didn't disclose any problem with it during any of the three conversations I had with her where I stated, "it will need to be the name and/or assigns."

It's just as well, as I read somewhere this morning, while reading reviews of their company, that they've actually stolen some bird dogs' investors. 

I decided to walk from the deal.  It wasn't a good enough deal, the margins were just too tight.

Disclosure: I am an employee of Econohomes

As a representative for Econohomes, I am sorry your experience with us didn’t meet expectations, and that there was a misunderstanding about how to purchase an Econohomes property. We do offer a full title closing and we do pay for referrals, but we don’t allow contract assignments. Although in some ways our transactions differ from traditional sellers, it results in a fast closing, which is a plus for many of our investor clients. We are accredited by the Better Business Bureau, and have bought and sold nearly 10,000 homes since 2006. Thank you for reporting on your experience. We will aim to improve, and we hope we can have a chance to better serve you in the future.

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