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The Doc Examiner .Com |
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Scams And Alerts Scam
artists follow the headlines, and know there are homeowners falling behind in
their mortgage payments or at risk for foreclosure. Their pitches may sound
like a way for you to get out from under, but their intentions are as far
away from honorable as they can be. They mean to take your money. Among the
predatory scams that have been reported are: The foreclosure prevention specialist: The “specialist” really is a phony
counselor who charges outrageous fees in exchange for making a few phone
calls or completing some paperwork that a homeowner could do for himself.
These actions rarely results in saving the home because the lending industry
knows who these scammers are and seldom agrees to work with them. This scam
gives homeowners a false sense of hope, delays them from seeking qualified
help, and exposes their personal financial information to a fraudster. This
is not to say that there are no reputable councilors out there when indeed
there are. You just need to practice due diligence when selecting a
councilor. The lease/buy back: Homeowners are deceived into signing over the deed to
their home to a scam artist who tells them they will be able to remain in the
house as a renter and eventually buy it back. Usually, the terms of this
scheme are so demanding that the buy-back becomes impossible, the homeowner
gets evicted, and the “rescuer” walks off with all the rent money and never
paid a cent towards the mortgage. The bait-and-switch: Homeowners think they are signing documents to bring
the mortgage current. Instead, they are signing over the deed to their home.
Homeowners usually don’t know they’ve been scammed until they get an eviction
notice. The Internet Foreclosure Specialists: These fraudsters claim to have a
“Nationwide Foreclosure Assistance Program.” They have elaborate websites
with false testimonials and an 800 number to call for immediate assistance.
When you call, they will collect all your personal information first then
tell you that “someone will get back with you shortly.” They then sell your
information to any fraudster that wants to buy it. That’s who gets back with
you shortly. The Short Sale Flipping: These con artists will send you a letter,
or might even knock on your door to tell you that they want to “buy your
house and that they have worked with your lender in the past.” They will make
a valid offer on your property well below the market value and tell you that
“they know your lender, and that they will accept the short payoff.” They
then open escrow and proceed to purchase your home. They notify you that
“your lender has accepted the short sale.” All the while, they have never
talked with your lender. The scam here is this. They have an accepted offer
from you to buy the property at a price well below the market value. When
they opened escrow, they instructed the escrow company to show their vesting
as “Their Name and or Assigns.” They then
find a buyer to take the assignment of the purchase and who will agree to pay
the difference up front between the agreed sales price and the market value.
Both you and the new buyer have been duped. The new buyer has been robbed of
his upfront cash while you are still in foreclosure with no short sale
agreement from your lender. The con artist walks away with cash equity
because he sold his rights to a bogus purchase. What You Should Know: Before doing business with anyone, you should know
where their place of business is. You should know how long they have been at
that location. You should know how long they have been in business. You
should know all costs involved with their service. Who To Avoid: 1. Anyone who makes promises when logic tells you that
those promises may or may not be keep-able. 2. Anyone who offers a service for free. They typically
just collect all your documents then sell your personal information. 3. Anyone who comes to your door and wants to buy your
house. 4. Anyone on the internet who claims they can modify your
home loan but doesn’t give pricing disclosure.. 5. Anyone who offers a money back guarantee. Remember,
they still have your personal information. 6. Anyone other than a licensed Attorney or Real Estate
Broker who claims to be a Forensic Loan Auditor 7. Anyone who comes to your door offering you a bail out
loan. 8. Anyone other than an Attorney who takes your case on a
contingency. You will wind up paying the final contingency amount even if a
compromise is reached with your lender. Contingencies are usually 30 to 40%
of the forgiven amount and lenders will not agree to pay the Loss Mitigator.
You may have saved your home from foreclosure only to lose it to a Mechanics
Lien filed by the Mitigator. |
