Home raffles seem to be occuring more and more often with the econony being in such rough shape. People from all over the America are upside down with their home mortgages. Most people who use home raffles do not have enough equity to sell, but they also lack the income to continue making payments.
Home raffles present an effective way to help sellers get out of otherwise impossible negative equity situations. A home raffle is perfect for sellers who are in a negative equity situation. Instead of letting the home go back to the bank, a seller will try to sell enough tickets to equal the pay-off amount on their home loan. For instance if a home owner owes $100,000 on their home, but the true value is only $90,000, the seller could attempt to sell 2,000 tickets at $50.00 a piece.
Doing a home raffle creates a win/win for both the seller and the winner of the raffle. Selling tickets for $50.00 a piece makes them affordable enough for just about anybody. In the end everyone is happy. The seller avoids foreclosure, and one lucky winner will experience the dream of owning a home for only $50.00.
1 comment:
This advice is irresponsible.
Having developed and directed a home raffle program for a major nonprofit organization over the past twelve years I can tell you that there are many complicated moving parts - the most significant of which are legal issues.
What is begin proposed here is illegal, unrealistic, and misleading.
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