Amazing stories of how the scammers take advantage.  Hopefully there is a special place in HELL  !

Bill, I shouldn't be surprised at the scam artists waiting for their prey but it does still amaze me that someone could take advantage of another's misfortune. If there's any justice at all there IS a special place for them!

Is it any wonder distressed borrowers hesitate to contact professionals? "Professional" advice got them into the mess in the first place.

I agree with all and everyone.  Seems perhaps instead of holding 1st time home buyer seminars we should be holding what to do in case of foreclosure seminars!

Hmmm...

Rosario, You're so right! They still deserve our help though.

Matt, Interesting idea!

Lynette- Perfect....I am going to read your earlier Posts....thanks for including them.  Desperate times result in desperate behaviors.....and this is when the Sharks come out!!!!!  Everyone needs to be careful that they are dealing with a legitimate company/non-profit etc.

I would urge you not to ignore or pass judgement on investors who are genuine in their desire and ability to buy a house in foreclosure. Of course there are scammers and poor performers, as there are in all professions. Afterall, it was these sorts that got us INTO this subprime mess. I buy houses in foreclosure many times a year and frequently from Realtors that couldn't find any other buyers. We make legitimate offers to lenders and help sellers with their short sale packages. My advice would be to seek out your local investors and get to know their reputation. They can be a valuable resource.

One easy warning sign of a scammer is any up front fees. A true investor makes their money from actually buying the property and should not be concerned about fees for 'service' or 'consult'.

Jeremy, Thanks for your advice!

 If it sounds too good to be true, then you're dealing with an amateur con artist.
Dennis Marlock

Sometimes its difficult to distinquish a genuine investor from a scammer.  Obviously there are many people who invest in foreclosed properties who are doing a genuine service to both the homeowner and the lender by buying the distressed property.  A homeowner should, in fact, hope a investor comes along before their house is foreclosed.  The difficulty, of course, is that scammers appear to be honest, hardworking investors.    False Promises made by scammers:

• We buy houses: instant cash.
• Cash for houses: any situation, any condition.
• Well get you a new mortgage with low monthly payments.
• We'll help you filed bankruptcy to stop this foreclosure.
• We'll save your credit.
• We'll pay your first month to month rent or payments in your new place.
• You will get several thousand dollars in cash back that you can use any way you want.
• If you sign the house over to us the foreclosure will be recorded against us, not you.
• We'll buy your house "as is."
• It will cost you thousands more if your property is sold at auction.
• We guarantee we'll find you a buyer in seven days.

Predators portray themselves to distressed home-owners as a "White Knight" riding to the rescue.
They know that the homeowner wants someone to rescue them and they zero in on that desperation.
They promise to help the homeowner to get a "fresh start" and point to examples of other homeowners that they have helped.

Non-scammers, i.e. honest investors, often use the same tactics and language.  The difference is obviously one of intentions.  As a real estate lawyer I've seen the damage scammers have created. 

Ralph,

RE: *We buy houses *Cash for houses: any situation, any condition *We'll buy your house as-is

The first sentence in your comment states, "then you are dealing with a con artist." I would argue that some who say this are predators, but most are not. I would define a predator as someone with no intention or ability to help a seller or someone who makes false promises.

I would guess, judging by your last paragraph, that you have never sold anything for less than full retail value. Nor have you ever paid less than full retail value for something. The fact is, that the rest of us are more than willing to discount something if we know we can get rid of it faster (Realtors call it 'reduced') - especially when it is a house that is destroying credit by the month.

I will reiterate part of my previous comment: I recommend seeking out your local investors and getting to know their reputation. They are a valuable resource!

Jeremy, I agree entirely with your last sentence.  Investors are a great resource and homeowners should hope a decent one comes along before their house is foreclosed. 

I have seen that a company has sprung up that you pay $900 to and they provide you info on HOW TO go through with a forclosure! They urge you to pay all your other bills and simply walk away from working out your mortgage.

Ralph & Jeremy, I agree that knowing your investors is invaluable, unfortunately too many desperate people are falling prey to the unscrupulous. I wish we could get more consumer info out there to these people. 

Jeff, RRRRRRR I'm sorry that's not intended for you. Companies like this just make me boil . I guess it wouldn't work for them to say something like, "Losing your home? We'll make sure it happens!"

Excellent advice, Lynette.  Seniors are often not as wary as they should be about services offering unsolicited help.

Brian, Thanks for mentioning seniors. They're a prime target for for the unscrupulous.  Many of them also don't know of an option to them if they are homeowners...sometimes a Reverse Mortgage can help them out of the situation.

Thanks for the comment. Seniors are a special group that need to be addressed. 

We definitely need to offer foreclosure seminars, and education consumers on the difference between the loan products, and what questions need to asked of the lender.

Serena, Great idea! Thanks for stopping by.

Serena, Great idea! Thanks for stopping by.