With the recent rise in foreclosures, foreclosure-related scams have exploded onto the real estate scene. These so-called “foreclosure rescue companies” claim they will help save your home, but in reality are out to make a profit – at your expense.
If you are at risk of or in foreclosure, here are some of the red flags to watch out for:
- Asks for money upfront before providing any service.
- Instructs ou not to contact your lender, lawyer, housing counselor, family, friends, or others.
- Asks for mortgage payments to be made directly to his or her company or a bank account set up by that person rather than your lender.
- Requires payment only in the form of cash, cashier’s check or wire transfer.
- Promises to stop the foreclosure process, no matter what the circumstances.
- Advises you to transfer your property deed or title to his or her company.
- Offers to fill out paperwork for you.
- Encourages you to lease your house and back it back over time.
- Asks for something to be done immediately and without delay. This includes pressuring you into signing paperwork that you have not had to read thoroughly or not not fully understand.
- Offers to buy your house for a fixed price that is not set by the housing market at the time of sale.
- Asks for you to give a power of attorney.
- Asks for signatures on a grant deed or deed of trust.
- Asks for signatures on a document that has lines left blank.
- Fails to provide copies of signed documents.
- Refuses or fails to put an oral promise in writing.
Report Fraud
If you have been a victim of a foreclosure-related scam or approached by a scam artist, you may report the incident to the following organizations and government enforcement agencies:
- CA Attorney General http://ag.ca.gov
- California Department of Real Estate www.dre.ca.gov
- Better Business Bureau www.bbb.org
- Department of Housing and Urban Development (HUD) www.hud.gov
- Federal Trade Commission (FTC) www.ftc.gov
For even more information regarding foreclosure rescue scams and foreclosure avoidance, contact me or visit my website at www.JosephCapote.com.
Filed under: Buyer's Blog, Foreclosure Avoidance, Seller's Blog, foreclosure, short sale, Short sales
Joe Capote 