“My two daughters said, ‘They aren’t giving you enough for the house,’ ” Nelson says. When she expressed concerns about the contract to the wholesaler, a lawyer threatened to sue if she failed to close the deal.

One daughter then called Community Legal Services of Philadelphia, a legal aid organization. After CLS cited a 2020 Philadelphia law aimed at unethical wholesaling practices, the company agreed to cancel the contract.

Homeowners nationwide are getting trapped in dubious wholesaling contracts, enticed by promises of quick cash and simple transactions. Wholesalers often promise to buy your house “as is.” They mail flyers, send emails or make robocalls declaring, “We want to buy your home,” and they post roadside signs proclaiming, “Cash for homes.” But as Nelson discovered, homeowners often receive tens of thousands of dollars less than their home is worth.

“On average, they’re robbing you of $50,000 to over $100,000 of equity,” says William Boucher, deputy director for enforcement with the Nebraska Real Estate Commission.

Despite the shady practices, the industry is growing. Real estate wholesaling is expected to be a $15 billion market in the U.S. by 2033, says research firm HTF Market Intelligence.

AARP is working with state lawmakers to regulate the residential wholesaling industry in several states. State lawmakers can use a model set of regulations crafted by AARP, which includes requirements to get an appraisal of a property’s value, a license for wholesalers and a right-to-cancel option so homeowners can void contracts.

“Too often, residential real estate wholesaling involves predatory tactics that can strip homeowners—especially older adults—of the generational equity they’ve built over a lifetime,” says Samar Jha, a government affairs director at AARP.

Wholesalers often use aggressive, misleading practices. Companies can find ZIP codes with high concentrations of older homeowners and comb public records to identify foreclosure filings, divorces and recent deaths.

“They find homeowners in difficult situations and pressure them to enter these contracts quickly and to close the sales quickly,” says Keith Clayton, special deputy attorney general with the North Carolina attorney general’s office. “They engage in all kinds of high-pressure sales tactics, misrepresentations about the value of the home, misrepresentations about market conditions, misrepresentations even about possible tax debt.”

Their pledge to buy properties “as is” can also be a sham. Buyers sometimes retract that promise and demand repairs before accepting a deed. For homeowners trying to avoid foreclosure, the buyer may promise a way out, then “take the deed without paying off the mortgage balance, leaving the home seller responsible for the monthly payments,” the Pennsylvania attorney general’s office warns.

Unscrupulous tactics to prey on homeowners aren’t limited to wholesaling. In a 2025 survey from the National Association of Realtors, 63 percent of respondents said they were aware of title fraud (when a property title or deed is transferred without the owner’s knowledge) happening in the past year. The FBI received more than 12,000 real estate fraud complaints in 2025, with $275 million in losses, a recent report found.

One case that officials say illustrates deceptive practices involves a Florida company called MV Realty, which has been accused in several states of preying on homeowners. Among the targets was Dorothy Sayah, who was suffering from dementia-like symptoms. Shortly before a Florida court declared her incompetent, Sayah, then 82, signed a contract giving MV Realty the exclusive right to sell her home over a 40-year period. If another firm or broker sold the home, the company was entitled to 3 percent of either the sales price or the appraised value, whichever was greater. Sayah received $800 for signing the contract. “She didn’t need $800. She was financially set for life,” says Joseph Karp, Sayah’s attorney for many years. “It was an unconscionable agreement.”

Sayah died a few months after signing the contract. Karp was able to get the contract rescinded. He also contacted the Florida attorney general’s office, which filed a lawsuit against MV Realty. In December 2025, a court ordered the company to pay $3 million. Attorneys for homeowners are seeking restitution from that settlement.

Other states have achieved victories: Colorado, Massachusetts, North Carolina and Pennsylvania have announced settlements this year. “This was a poster child in predatory conduct,” says Colorado Attorney General Phil Weiser. “They gave people the impression this was easy money and made it hard to know what they were signing.”

AARP is pushing to pass tougher state regulations against predators. “Stronger consumer protections are needed to prevent deceptive practices and help homeowners retain the full value of their homes,” Jha says.