Well, it’s not illegal but it’s opportunistic. These companies are hell bent on finding people in dire situations and luring you in with the vision of cash in your head. Basically it’s an equity purchase and they will make you an offer that’s probably about 70% of your listing price. They will, in turn, resell your house – being able to wait out the market…which you are not. They will negotiate the lowest possible purchase price with you, again, not illegal, just smart business on their behalf. Keep in mind you didn’t see any of these signs when the market was flying high. You need to look at your equity position and determine what your what of sale would be if you had your home listed conventionally (with a Realtor). Remembering your offer from the home buying company will be no more than 70%. This low offer could make it counterproductive to dump your home; you may actually consider trying to ride out the market on your own in order to realize any profit at all. The home buyers will assume your mortgage payments but you are still responsible for the overall debt until the home actually sells. They have your title, but not your mortgage. Will maintaining this debt preclude you from moving forward financially? Something very serious to consider as your mortgage debt will not disappear from your credit report. The enormous profit they will end up making could be yours instead. Can you rent your home or refi it? Consider all your options and do your math carefully. Good Luck to you!