I have noticed over the years quite a few scams that hurt unsuspecting victims stealing their property and leaving them homeless.  Here are a few things that should help us in keeping our wits about us as our economy continues to change. 

 LEASE/BUYBACK SCAMS

With rising interest rates, many homeowners with adjustable rate mortgages have seen a substantial increase in the amount of their monthly payments.  As a result, the number of pending foreclosures has recently skyrocketed, as has the number of scam artists looking to profit from this trend.  These so-called "foreclosure avoidance counselors" are looking for homeowners who are desperate and unsophisticated.  They offer their services, claiming that they will assist the owners by avoiding pending trustee's sales and improving their credit ratings.  The details of the proposed schemes are not well explained or hidden entirely, usually leading the owners to believe, incorrectly, that they will continue to own their homes.  In fact, the scam artists are looking to acquire ownership of properties with substantial equities or even unsubstantial equities, without using any of their own money.  After one of these transactions closes, the new owners often act quickly to remove the original homeowner from the property. Fred Phillips, The 2008 Claims Survey 

EQUITY SKIMMING

 A  person purchases a dwelling by assuming the payments on existing mortgages, deeds of trust, or real estate contracts, or by representing that such obligation will be assumed: and the person fails to make payments on such mortgages, deeds of trust, or real estate contracts as the payments become due, within two years subsequent to purchase.  The person diverts value from the dwelling by either (a) applying or authorizing the application of rents from the dwelling for the person's own benefit or use or (b) obtaining anything of value from the sale or lease with option to purchase of the dwelling for the person's own benefit or use, or (c) removing or obtaining appliances, fixtures, furnishings, or parts of such dwellings or appurtenances for the person's own benefit or use without replacing the removed items with items of equal or greater value.  Another example is a person purchases a dwelling in a transaction in which all or part of the purchase price is financed by the seller and is secured by a lien which is inferior in priority or subordinated to a lien placed on the dwelling by the purchaser or secured by a lien on other real or personal property or is without security as you might have guessed the purchaser defaults on that loan. Fred Phillips, Current Closing Problems

LATE SIGNING                          

The real estate purchase and sale agreement for a house and lot included a final closing date of September 29.  Since the buyer had not been contacted to make an appointment to sign the closing documents, he called the title company at about noon on the final closing date.  The buyer spoke with an employee who said the closing documents were ready but that she was too busy to have him come in to sign that day.  After several more calls, he signed the closing documents at approximately 4:00pm at the title company's office.  According to the buyer's complaint filed with the court, because the documents were signed so late in the afternoon, it was impossible for the loan proceeds to be available and for the sale to close on that date.  On the next business day, the seller refused to sign the closing documents.   The case was settled on undisclosed terms.   Fred Phillips, The 2008 Claims Survey             Rich, we will probably see more of this but with the purchaser acting to get out of a transaction wherein the property value is perhaps plummeting!   Drives you crazy doesn't it!  How do they sleep at night?!  Thanks for making me think, Terrific Post!!!