Are you selling a home for a client who would prefer to remain living in their home, but for economic reasons can no longer afford to? As the economic downturn continues to cause havoc with home owners, desperation can take over and make even the most cautious person act too quickly. Unfortunately, there are those out there who will prey on these people. There are presently three known scams in the U.S. that your clients need to be made aware of:
1) Phantom Help - just as your client thinks there is no hope to keeping their home, they receive a brochure or business card in the mailbox. They contact the number and the "company" indicates they can refinance their home with lower payments which will fit into their budget. As the owner is vulnerable and quite desperate to keep their home, they sign with the company. Unfortunately, they are really signing over their home.
2) Bailout - owners can no longer afford paying the mortgage. The "company" indicates they will purchase the house from your client at the lowest price possible. Your client will pay them rent while they continue to live in the home. They are told when they are financially able, they buy back the home at the same low price the company paid for it. Unfortunately, when signing with this company, they are signing over the deed to their house.
3) Bait and Switch - Good looking, well dressed gentlemen masquerading as housing counsellors make contact with your client and indicate they can offer to refinance their home and provide them with affordable payments. Sleek talk and a process which moves very quickly, has your client signing over the deed to their home.
It took one woman six years in court to get the rights back to her house. Most people are not so lucky.
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