My wife and I just sold our home after leaving the Marketplace Homes program 8 months ago. Several friends have asked me how it worked and I won't allow others to become a victim.
Marketplace Homes, aka. Marketplace Housing preys on vulnerable homeowners who are underwater on their mortgage and looking to move. Do not become a victim! Their business practices are misleading and fallacious. If their 6 year guaranteed lease program sounds to good to be true its because it is!
When looking to move deal only with people you can meet in person - follow this one rule and avoid 99% of scam attempts. You never have the option of dealing with a Marketplace Homes representative in person. They don't want to meet you! The company electronically wires funds into your bank account which seems convenient until they stop paying you or drastically reduce you payments! Only a scammer will "Guarantee" your transaction. Marketplace Homes is a scam because they advertise guaranteed rent on your existing home - when in fact, the only thing they can guarantee is the commission they receive from the builder when you buy a new home.
Nothing stops them from dropping your "Guaranteed" rent every year. What good is a guaranteed payment 50% lower than what you signed up for. Once they receive their real estate commission from the builder they have no loyalty to you or your family. DO NOT RENT your home to a company that is guaranteeing you rent without seeing the interior, exterior or meeting you in person. Ask your self, how is this company making money? If you can't answer that question, do not sign up for the program.
1.) Marketplace Homes name is never on the mortgage or title. If they decided to stop paying you tomorrow, you would be responsible for 2 mortgages and maintenance on 2 properties.
2.) Can you afford to maintain 2 properties? A year after we moved out, we had to replace the roof and furnace on our old home which cost us $10K. Did Marketplace Homes help to cover the cost NO! There is a cost and responsibility associated with being a landlord. Make sure you are prepared.
3.) If you really want to move, research property management companies that are honest. A typical property management company charges 1 months rent and takes 10% of what they receive from renter. Honest property management companies do not guarantee rent because that would be a gamble. They never know what the market can bare until they determine what renters are willing to pay. They make money by charging a 10% fee. If Marketplace Homes charges no fees and guarantees rent, how are they making money? If you can't answer that question, do not sign up for the program!
*Do not gamble your home.* Marketplace Homes say they offer a guarantee when in fact they guarantee year one then reduce your amount every year after. Year 2 is a gamble. Your rent will decrease if they bet to high and received less from the tenant.
3.) Trying selling your home on your own or using a real estate agent. That way you are dealing with someone in person and they are held accountable for what happens.
If you have been a victim of the Marketplace Homes scam share your story and save someone from making a costly mistake.
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