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Are you facing the threat of losing your home? Be wary of individuals and companies offering to "help" you out of your difficult financial situation. Consumer advocates report an increase in complaints about foreclosure "rescue" scams. These scams specifically target homeowners who are in financial distress. Scam operators advertise over the Internet and in local publications, plaster posters on telephone poles and at bus stops, stick flyers in people's front doors or contact people whose homes are listed in public foreclosure notices. Sometimes they direct their appeals to specific religious or ethnic groups.
In one scenario the scam operator offers to "buy" the homeowner's property by paying off the amount that is overdue on the loan. He convinces the homeowner to move out and deed the property over to a third party. The homeowner is given the option of renting the property with the option to buy it back later. The rent payment on the home is often higher than the homeowner can afford. Often times, the original homeowner cannot make the rent payment and is evicted from their home. Or, if the homeowner expresses a desire to buy back the property, the scam operator usually sets the price of the home higher than the homeowner can afford.
The hapless homeowner can lose his equity and his home. Sometimes, the homeowner's troubles go even deeper. In many cases the initial mortgage has not been paid off and the deed was never transferred, as promised. Not only is the homeowner faced with eviction from the home, but they still owe for the original loan amount.
This article hits really close to home, because just recently one of my clients, whom I've been working with to find a lease-option property, found ‘the perfect house' on one of these scammers websites. The home had been signed over to a land trust, and marketed for EIGHT MONTHS at a price far too high to get any legitimate offers, until it went into foreclosure. Now, the house is tied up in legal proceedings due to the land trust status, when all the seller wanted was OUT, and my buyers wanted IN. The sad part is, had that hapless seller facing foreclosure simply consulted with a professional rather than an internet non-Realtor company, he would have saved himself time, money, a great deal of stress, and his credit score!
If you or someone you know is in danger of losing their home to foreclosure, get the facts straight and consult a professional Real Estate Consultant or Attorney!! Don't be a victim to these "get rich quick" investors-they are not out to help you, only themselves. A good Realtor can help you sell your home properly as a Short Sale, but THERE MAY BE OTHER OPTIONS-do not resort to any of the abovementioned unless you know the facts!
Some more tips by the BBB:
The Better Business Bureau advises consumers who are tempted by such offers to recognize that they are at real risk of losing money, equity, their home or all three. Carefully consider the following if your mortgage is in arrears or you are facing foreclosure:
•· Talk to your lender. Ask about how to restructure your loan payment or refinance.
My suggestion is to talk to an experienced and licensed professional!
•· If that proves to be unfeasible, try selling the house on your own to pay off the lender. Signing over a deed in no way releases you from your mortgage responsibilities!
Selling your home quickly on your own in today's market is virtually impossible, and it does NOT benefit you in any way! Unless you actually have equity in your home, it will go to the lender as a Short Sale, which needs to be carefully presented and negotiated!
For more Tips and strategies if you are facing foreclosure-check my website
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Yep, Loretta, the con artists are everywhere. In Maryland the legislature enacted some pretty tough foreclosure scam laws recently in order to prevent just this kind of thing. Of course, finding the crooks and prosecuting them is another story.