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Econohomes, Austin, Texas Complaints & Reviews - tricky business

Econohomes Contacts & Informations

Econohomes

Posted:    swain

tricky business

Complaint Rating:  91 % with 55 votes
Contact information:
Econohomes
Austin, Texas
United States
Always do your research! I was interested in buying a home from this company. On the first call I was told that I would have to pay cash because the bank would not give me a loan on a property that needed so many repairs. This was not true. After looking at the property there was something not right about it. Someone apparently had been doing work on it.Many of the problems that appeared in the pictures were already repaired. But the person I spoke to said it could have been previous owners. His explanation made sense. My plan was to purchase it, repair it, and then resell it. After talking to him certain things were not making sense. I felt a little rushed to put an offer in. So I did. But I decided to do a little research on it and when I recieved the property record Econohomes did not show up on it. Nor on the legal description. The man assured me that they owned it and encouraged me to read over the cash contract. I told him that we decided to go through a bank and my husband would get title insurance the following day. That's when the truth came out. There was a huge issue with the property and the title. We would have been in a mess if we purchased this property for cash. Our plan to resell it would have been ruined.
Comments United States Real Estate
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 24th of Jan, 2011 by   nolainvestments 0 Votes
Swain,
I came upon your posting and I am very familiar with Econohomes. I have closed a good number of properties with them and I can explain what you went through, and why. For starters, Econohomes entire platform is geared towards the more serious investor. It is not a field for the faint of heart. I expect that the sales staff is so accustomed to working with seasoned investors that they may not explain things in the detail that newer investors need and I can tell you from experience, coaching a regular homebuyer through an Econohomes closing is no easy feat.
The first issue you have to overcome when working with these properties is "the current system." Econohomes can only play by the rules that the banks have laid out. When Econohomes buys a package of 250 properties they are given proof of purchase but the original deeds have to be processed by the bank/servicer. Econohomes is at their mercy. It is just another one of these things that we now find ourselves dealing with in the foreclosure mess. Because Econohomes has to wait on the original deed to file it in the courthouse, they do not show up as owners sometimes for several months. They are still perfectly legal to sell, as they have the necessary documents to prove ownership.
You could have gotten title insurance. All of my clients insure titles on the properties they purchase from EH.
I think you could have used some coaching before you stepped to the plate at EH. I know many things seem "funny" when you do not fully understand. Had you really understood AND had a title agent there to help, I think you would have been fine.
Truly, to have access to these properties at these kinds of prices, you do have to be on a certain level. Econohomes has an inventory of over 1000 properties at last count. That is a LOT of RISK. They put up large chunks of cash and they take on large risk in order to get the discount. If you want a piece of that discount, you have to understand the game.
I would be more than glad to discuss personally. I truly hate to see you lose out on that source of properties if you are investing.
Feel free to contact me at nolainvestments@gmail.com
Thanks!
Kimberly Jones
 25th of Jan, 2011 by   Dan Novotny 0 Votes
I have been working with this company for awhile now and I have referred a lot of investors to them. This is definitely a legit and honest company you just have to understand the process. The post above me explains the process very well so I'm not going to retype it. This is geared to investors and they have really great prices. I wouldn't recommend it to a first time home buyer! But if you are a serious investors this is a great place to shop for investments. I have showed a few of there houses when they were on the MLS before they purchased them and I can tell you there prices are a lot lower!!

I work with Brandon Foskey of Econohomes and he explained the whole process to me so I understood it from day one. If I didn't think it was a good company I would not be recommending people to look into it. We have a great relationship and he is really easy to deal with and will try to do whatever it takes to make the deal happen. If you have any questions about the process, the company, or any property give him a call. He will explain everything to you so you understand like I did from the start!
Or you can email me personally with any questions at dan@dannovotny.me.
Dan Novotny
 27th of Feb, 2011 by   Texas Broker +1 Votes
I am a real estate Broker in Texas, and Econohomes is a solid company that buys real estate in bulk from large investor/banks that are in poor condition as a fraction of the value. They in turn resell the property with a reasonable markup. The property title does not always show up on title right away as they resell quickly, and in bulk transactions the title transfer can sometimes be delayed. These can be good buys for cash investors, but as always a buyer must do certain due dillagence prior to purchase and know what they are doing. I have represented several investors and owner occupants with cash assisting them with purchasing property from econohomes. Keith Smith - BROKER, NoForeclosure.com, Direct 469.877.3766
 1st of Jun, 2011 by   Real Estat Investor 2012 -2 Votes
Do your research on Econohomes, and make sure you show your contract to your attorney. The original complaint posted on here definitely has some validity. Econohomes is not recorded on the deed of these properties and an attorney or title company would probably advise against purchasing the property. Also, there is a high probability that some of these folks commenting on here are working with Econohomes. One gentleman mentions that he refers people to Econohomes. They pay these individuals for their referrals. I would say his opinion could possibly be a little one sided.
 7th of Jul, 2011 by   Real Estate Pro 2 -1 Votes
I've dealt with Econohomes before. They are the slimy cigar smoking used car dealers of foreclosures. Their sales people are arrogant and their inventory over priced. Make sure and ask them specifically if they have a WARRANTY DEED. They will try and give you some pitch about a trailing deed. A term that I have never heard in 20 years in real estate. As long as you don't have a warranty deed then you are opening yourself up to serious risk down the road. My attorney instructed me to run from these people. The sales guy at Econohomes tried to get me to go against the advice of my real estate attorney and then attempted to argue real estate law with him! You are a fool if you sign their contract without a warranty deed.
 9th of Sep, 2011 by   RickRE +1 Votes
After reading these complaints... I'm looking at an ad right now for a building here in St. Louis... Econohomes is the owner of the property.
 9th of Sep, 2011 by   RickRE 0 Votes
To clarify... they are on the tax record as the owner of the building... and no, I have no affiliation with Econohomes. I'm an agent looking for deals and came across one of their ads and wanted to know more about the company
 14th of Sep, 2011 by   Medusa2012 0 Votes
I bought a home from them and the only problem that I saw is that their title people needed to do a little more research on the homes they buy. There was a double deed on my home but I got it straighten out. You really have to do your own research as far as back taxes which never showed up until after I bought it and it the city had been maintaining the property. You just have to do your own PI.
 16th of Nov, 2011 by   Warningtoall -1 Votes
This company is a scam. They took my money and held it for 6 months and never delivered a deed. DO NOT TRUST THIS COMPANY. They don't have the title to the property they are trying to sell.
 20th of Nov, 2011 by   jstan13 +1 Votes
i recently purchased a home from them and had my attorney go through the process with me. Initially, like others have stated, it was not deeded in their name. My attorney and title company advised me not to proceed, so I didn't. I told the econohomes sales agent to just contact me when they had the deed in their name but they told me they would be putting the place back on the market after our initial negotiations fell through. Several months later (probably about 3 months) econohomes called me and told me they had the deed in their name. My attorney and title company confirmed it and went through with the deal and haven't had any trouble with it, I felt a lot safer after I had my attorney do everything and had title insurance put on the place. My suggestion to potential buyers it to make sure your attorney researches any possible judgments against the property (so you don't get sued), get title insurance, and make sure econohomes has the deed. If you do your due diligence I'm sure you'll be fine. Overall the transaction was smooth.
 2nd of Dec, 2011 by   jeffs48 +1 Votes
First i have no affiliation with EH of any kind period. Now that being said as an investor of 30plus yrs let us understand a this is can be risky if you do DUE Diligence like a savvy investor you will either be able to close a deal or it will simple fall apart easy to understand. So why cry about who or how another company does business if it doesn't fit within your idea, ideal or business model move on why waste all this energy. Do as i did hire your OWN title company i paid $225.00 came back clean okay so now i can buy the house there ya go i will put it on the market remodeled for hopefully a profit learn to flip and understand real estate or get another career people get on my nerves lol
 30th of Aug, 2012 by   AngieMM 0 Votes
I am interested in one of Econohomes "rent to own" properties. Can anyone tell me what I should be looking for or aware of when it comes to rent to own properties. I have never done a rent to own before.
 27th of Jan, 2013 by   J.P Murphy -1 Votes
I purchased a home in Michigan from Econohomes and unfortunately was told I had a trailing deed after investigating further I found out the property had a IRS lien against it...i was unable to take posession of the property ...finally after six months of sitting on a vacant money losing property I lost it...these guys are crooks and after calling the better business bureau I found out they have hundred of complaints against them.
..they are scam artists and my best advice is if it seems to good to be true it is..
.don't be the next victim ...spend a little extra money and be safe not sorry.

J.P Murphy
 11th of Mar, 2013 by   Bill mc. +1 Votes
With any purchase one should consider all the facts. We bought a house through Econohomes back in September and just got the deed. (March 10). While it took some time, without hesitation I would work with them again. The service was excellent and explanations were clear. This is the first time we bought a repo and it went well. My only complaint was the time issue. However, in the research process they state it can take 6 months and if one does not take the time to read the print then it is not the company's fault. Any time you buy something you should be an educated buyer. They sell as is and it is your responsibility to check everything out. If you do not then perhaps you shouldn't even be reading this (be interested in buying repo houses). So in conclusion, two thumbs up! Bill from Michigan
 11th of Mar, 2013 by   Bill mc. 0 Votes
One more thing. The company is not a rip-off. Ignorance of a customer is not the fault of a company. When a company purchases (if you can use that term, since it appears that they might just own the right to sell it without really purchasing it) mass property then they can only relate what they know. They explained everything to me and I did my homework too. Sell as is means just that. Do your research. However, once again the process can be slow and if one wants a fast return then look somewhere else, but don't blame a ligament company for one's own ignorance or lack of patience. When I didn't get my deed for months I was concerned too and called many times. Every time they were nice and explained where we were. Through the whole process all was explained. I would rate it an A not A+ just because the time issue-but once again if you don't want to wait then buy something else. For one who wants a cheap price for a house then look no further! Bill from East Tawas, MI
 20th of Jun, 2013 by   realdeal217 0 Votes
I have bought a property off of Econohomes and could not be happier. Really real estate investment is not for the faint of heart!! You must do your homework, have the brass to inspect the property and have your own inspector come in and if you are satisfied with the as is condition jump because their properties move very quickly!! So if you are new to the investor property business buy a home from a local real estate agent because we all know that they will hold your hand and also stab you in the back with the other hand and you will pay twice for what you could get with Econohomes. Put on you big girl panties and get out of your own way or find something else to do that you already know how that just means more get deals for me!!
 14th of Aug, 2013 by   Connie in Gray's Harbor Co. Wa 0 Votes
I purchased an Econohome in Grays Harbor County Washington. When I had a property boundary survey done I found out that the original property boundaries were "wrong" by five to ten feet on both sides. This means I own ten feet plus of my neighbors' barn (recently built). And my neighbor on the east side owns around six feet of my one car garage (built in the 1950's). My survey efforts made the neighbor with the barn so upset he sent his son to remove the survey stakes as the surveyors were setting them. The surveyors witnessed this. This neighbor later dug up the permanent rebar marker the survey company placed at the edge of his property. That marker was recessed under the gravels in the center of his driveway. The county planning board says that in order to correct the boundaries everyone must agree on where the new boundaries will be. All owners-all banks. The boundaries must then be re-surveyed and the new survey submitted. And of course all fees paid. Adverse possession occurs after ten years in Washington State-but there are new property owners involved.
Additionally all parcels must remain at five acres. (although the way things are now they are not). Also all drainage ditches, driveways, and buildings must be taken into account. My neighbor wants has a twenty-five foot easement around that fairly new barn.
So the whole thing is just impossible. At the same time Fannie and Freddie and the banks are lending money for mortgages on these properties. I did not even know that was legal.
County plat maps do not show this.
Of course if I had known I would never have purchased this house.This makes the property impossible to sell. Filed a complaint with the Better Business Bureau and am talking to attorneys in the county about any action I can take concerning Econohomes. Watch out for this problem.
Also does anyone know if Econohomes has a duty to disclose info about the presence/condition of wells?
Connie in Gray's Harbor County - taylor2connie@gmail.com

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