Can’t sell your house? Raffle it off!

By: HousingWire staff
May 27, 2008

Obviously, the mortgage and housing slump isn’t something confined just to the United States — the global effects of losses that started here have contributed to a global housing slowdown, as mortgage lenders have tightened their belts even outside of our borders. Australia, the UK, and Spain; all are seeing some semblance of housing problems, for varying reasons.

But leave it to a Spaniard to come up with the most intruiguing idea for getting out from under a mortgage he can’t afford: a raffle.

Via Reuters:

Miguel Marina said he hopes to be able to pay off his mortgage, worth 80 percent of the value of his property, by selling 64,000 tickets at 5 euros each, promising his home as the single prize to the winner of a draw.

His website, elpisodeloscincoeuros.com, which means “thefiveeuroflat.com” in Spanish, provides a contract detailing conditions for handing over the property in the dormitory town of Ciempozuelos.

“I’m going to raffle off my flat,” Marina wrote, describing how he suffered sleepless nights trying to work out how to pay off his debts on the property he bought in 2005 before losing his job selling houses as Spain’s real estate market went into a tailspin.

“I’ve tried to sell it, but no buyers call,” he said.

Let’s think about this from the U.S. perspective; is that worthwhile? If someone was raffling off $10 tickets for a shot at a $300K property, would you take a chance and buy some tickets? Could be a very interesting play.

But we won’t try it. If someone in the U.S. tries this, be sure to let us know and we’ll give it a TON of coverage…

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23 Responses to “Can’t sell your house? Raffle it off!”

  • May 27th, 2008 11:29 am by Tim Shaw

    there have been several attempts at this around the country, some legitimate some not so much. Some have been sued by attornies general.

    I am director of a mid sized not for profit whose has been watching the raffle process to see if we could raise funds that way or if the local United Way could do so. This is the really only legititmate way to do it, that is have all but the basis in the property go to a 501 (c)(3) charity.

    For about a year, I have the news alerts set for House Raffle and have several hits. Let me know if I need to send some.

    Tim Shaw, Executive Director

  • May 28th, 2008 11:41 pm by Cedar Wilde

    I’d buy a ticket if I could. It seems to me unfair that an ordinary person can’t do this to save himself from crippling debt. After all he’s not robbing anybody.

  • June 1st, 2008 12:45 pm by Quincy Nix

    I am very interested in trying this approach to selling my house. I just had triplets in March and found out in May that my husband wants a divorce.. My children are still in ICU in SLC and I cannot work, I have no money, and I have a mortgage payment in Wyoming that I cannot afford. The house is in the middle of construction and I don’t think I am going to be able to sell it by just listing it on the market. Any suggestions would be great.

  • August 14th, 2008 4:33 pm by thebaglady

    This is not new at all. Just watch the movie The Spitfire Grill.

  • October 9th, 2008 4:52 pm by B Lukens

    I live in Florida and am seriously contemplating doing this with my home. I have been in R.E. for quite a while and if I am able to make it work on my own home, may be able to create a method to help others out as well. We got ourselves into this R.E. mess, maybe we can help eachother get out of it. Email me: blukens45@yahoo.com

  • October 11th, 2008 5:26 pm by JENNIFER

    WE OWN AND OPERATED AN AUTOMOTIVE SHOP FOR 12 YEARS WE CLOSED THIS BUISNESS IN 2007 DUE TO THE CRIPPLING ECONOMY; AND NOW WE CANT AFFORD THE PAYMENT. WE ARE VERY INTERESTED IN RAFFLING THIS PROPERTY. WE LIVE IN ILLINOIS DOES ANYONE KNOW IF THIS IS LEAGAL IN OUR STATE ? AND HOW DO WE GO ABOUT DOING THIS QUIK?

  • October 20th, 2008 10:02 pm by Debbie

    I am with Jennifer. I bought property in the thought I would be abole to build my dream home. What a joke. I have been thinking of raffling off the property. I also would like to know if this is legal.. Does anyone know?

  • October 30th, 2008 8:14 am by Kelly

    I AM TRYING TO RAFFLE OFF MY HOUSE IN NEW JERSYE AND ALREADY SPOKE TO AN ATTORNEY ABOUT THE TERMS. THE ONLY PROBLEM I AM HAVING IS FINDING A CHARITY TO HELP ME WITH THE PROCESS. IF ANYONE KNOWS OF A CHARITY THAT WOULD BE WILLING TO BE PART OF THE RAFFLE AND RAISE MONEY FOR THEIR CAUSE PLEASE EMAIL ME AT kquinn27948@yahoo.com. The property is located in South Jersey.

  • November 9th, 2008 9:23 am by Denise

    Very interested in this concept. We’re in the same situation as many above. Does anyone have info about this? Please email dsesyk22@yahoo.com

  • November 9th, 2008 9:52 pm by Jacquie Davies

    I just set up this website to sell my home for $1.00 http://www.ownahomefor100.com. It’s a twist on the house raffle which appears to be illegal. I don’t know how we could be prevented from protecting our hard earned investment. It’s more than obvious that we’re not playing a game for fun or profit. These are serious efforts to save homes & families. Like my website says, ‘the homeowner has been left out, while Wall Street has been bailed out & bonused for stealing our money!’ No one is bailing us out so why can’t we help ourselves? It’s harmless. This concept could prevent so many unnecessary foreclosures, homeless families & pets PLUS it gives a mortgage free home to a family that may not have been able to qualify for a mortgage in these tight times & helps a charity!
    Where is the wrong in that? I don’t get why anyone would see it any other way. I’m in the process of trying to get the website listed on the search engines. I am not a programmer & have no idea what I’m doing, so if anyone has a suggestion, let me know. Thanks, I’d be glad to get some feedback on the site. Jacquie

  • November 12th, 2008 12:29 pm by marie jardina

    I’d like to know more about this and the legality of doing so in Virginia.

    Marie

  • November 13th, 2008 4:16 pm by none

    Is holding an essay contest another possibility? YOu could put an entry fee on the essays, winners and runners up to be published on your blog or web site (if you have one), or in a compilation ebook that you could give away on the internet, and include the blog/website addresses of each contributing author. Most writing contests require entry fees. It is I *think* a legitimate way to go about this, but do your research before you try it, I’m not an attorney and I don’t know if the rules for literary & essay contests vary from state to state.

  • November 14th, 2008 12:06 am by Jacquie Davies

    From what I’ve been told the essay contest is based on skill not chance so it’s suppossed to be legal, my site has one also. My concern is that if ‘they’ decide to get you, they’re going to get you on something, somehow. I’m thinking of petitioning our government, Congress, Senate to waive the restrictions on house raffles until this horrible time is over. If you think about it, the banks actually get paid instead of stuck with another foreclosure & they get paid in full, not short. The homeowners get to move on without the horrendous giant black mark that foreclosure leaves on your credit for 10 years, they are never homeless, their children are never afraid & confused & their poor helpless pets don’t get abandoned or left behind. Plus new people get the house free & clear & if the lending standards today being so ridiculously high that family may never have been able to qualify for a mortgage Plus a charity gets a much needed donation. They are hurting now, when people don’t have money for food you better believe their not donating to charities.
    Sorry this is long, I’m not in foreclosure, but I am stunned by the number of people that are & wish to help anyone that wants the opportunity.

  • November 14th, 2008 9:36 am by M. Fran Eisensmith

    I also have 2 pieces of property in the pocono’s of penn. I would like to know if it leagal to have a raffale for that also in the state of texas or even on Graigs list? they sell everything else there… all comments welcome.

  • November 18th, 2008 10:20 pm by Larry D

    Isn’t it ridiculous that all of us have come up with a temporary solution to our individual mortgage crisis and we have to ask permission from BIG BROTHER ? I would say that most potential investors would pay $500 for a chance to own a home
    free and clear. It will work until it stops working. We need an address so we can send in a TAX to the right government agency.

  • November 19th, 2008 5:38 pm by Dom Pace

    I am interested in Raffling off my home in Florida I there are any legitimate organizations willing to help please contact me at 727-501-4151 thanks Dom

  • November 24th, 2008 11:56 am by tracey

    I am trying to find a charity in Oregon to partner with on this. Have even had some meetings with interested charities but they backed out because they didn’t think people would want to pay the taxes on their winnings?

  • December 8th, 2008 3:15 am by Amy

    There was a couple in White Rock, NM who tried holding an essay contest to raffle off their home and I guess the gaming commision decided it was a contest of skill and didn’t fall under the raffle law or something, I only read the article where they were making their decision. I assume they declared it legal because the raffle played through to its end, but they didn’t make enough money and had to return all of the essay contest fees.. I’m sure you could google it.

    There is a current contest that I’ve just sent my essay for. The theme was, “The Greatness of America”, the entry fee for the contest was a hundred dollars and the prize a house. I think its being run by two lawyers, not sure.

    I’m hoping enough people enter because I’d sure love a fighting chance to win this house!

    I do have a link for you to find out:
    http://winthishistorichome.blogspot.com/
    http://www.oldhouses.com/cf/displaylisting.cfm?q_listingid=4098
    I’ve seen this also on Preservation Magazine online and in an Santa Fe newspaper. You can google Amy Wainwright to find those links.

  • December 9th, 2008 1:59 pm by Loriann Gaunt

    My home is in Buckeye Arizona and I am working on raffling off my house. I found out in my state that I could not raffle the house myself but I needed to work with a non-profit organization. After some cold calling to organizations and no takers, I put an ad on Craigslist (which was eventually flagged for removal) and it was picked up by Tony Arranaga, a reporter for ABC Channel 15, who came out and did a segment for the news about raffle. I got many calls and I am now working with a non profit and I hope to announce who the non profit is as soon as we come to terms. Updates about the raffle are currently posted on my website: http://www.myhouse4raffle.com and I also have a blog: blog.myhouse4raffle.com

  • December 13th, 2008 11:43 pm by Shelley Kriebel

    We would be interested in reffling our home also so we could move to NC. How do you find out the legal issues? Also with the economy so bad can you get your asking price even if the appraisal is to low because of the CMP’s? This seems like a win win situation for everyone. End foreclosures, help homeowners with bank loan or lack thereof. This would boost the economy so I’m sure the government will put a stop to it.

  • December 19th, 2008 3:13 pm by Crystal | House Raffle Secrets

    The legality of a house raffle for a specific state is only part of the question. Some towns and cities don’t allow raffles even if the state does.

    There’s a list of links for learning if raffles are legal for your state at:

    http://houserafflesecrets.com/house-raffles-are-they-legal-in-your-state/

    But even if a raffle is legal, a house raffle may not be. Or you may not want to because of the policies. For example, Hawaii doesn’t allow a fixed ticket price, only optional donations!

  • December 30th, 2008 3:40 pm by londa

    Loriann

    Which non profit did you use? Gilbert home we want to raffle.

  • December 31st, 2008 9:01 am by linda

    We want to raffle our land in Palm Beach county,fla. Near the
    ocean and would like to sell it without losing our shirt. Is it legal and how do you go about doing this? We are ready.
    Also have a small condo which we are upside down in. Would like to do both.

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