Maryland Bans ‘Check in the Mail’ Homebuying Tactic

Maryland homeowners who open their mailboxes to find what looks like a check offering hundreds of thousands of dollars for their house will have one less reason to wonder whether they should cash it.A new state law took effect on Thursday making it illegal to send a check or other negotiable instrument as part of an unsolicited offer to buy someone’s property.The measure targets a particularly aggressive version of the familiar “we buy houses” pitch. Instead of sending a homeowner a letter or postcard with a cash offer, some would-be investors have sent what looks—and in some cases functions—like an actual financial instrument.The idea is similar to a “live check,” a long-standing lending practice in which a company mails a consumer a real check they never requested. If the recipient deposits it, they can be agreeing to a loan, along with its interest, fees, and repayment terms.As real estate scams rise across the country, the new regulation could provide one more layer of protection for vulnerable homeowners.‘They are very dangerous tools’Unsolicited offers from investors seeking to buy homes off-market are hardly new.Homeowners routinely receive postcards, letters, calls, and tex...