How to avoid Short Sale Scammers- Part 1

There has been a considerable increase in foreclosure and short sale rates in past few years. Overall increase in foreclosures has increased the incidents of fraud schemes played against the house owners. The primary target of these scammers include unwary house owners who are facing financial crisis and are desperate to get rid of their mortgage issues. These scammers pose themselves as helpful agencies trying to help families in need but their ultimate goal is to get the equity of your home. Authorities are working hard to reveal some of the latest methods by which these scams are played. I have a rich experience of working as short sales agent in Temecula and I would like to inform you about some common methods used by these scammers to get the money out of your pocket.

Schemes with Sales and Leaseback Opportunities

It is one of the most common methods used by scammers under which the scammers present themselves as investors that are working to help families facing financial hardships. Under this scheme, the scammer promises to purchase the house, settle your pending mortgage and then leaseback the house for indefinite period of time. Home is one of the most important and basic requirement of a family. These investors prey on the emotional concern of the families and they succeed in convincing homeowners to sell the house at very low prices. But the end conclusion of such deals is that the house is never offered back for renting and the house owner lands into much miserable situation.

Stealing your Home by trickery

Every house owner is afraid of losing his house but it often happens, especially with intelligent people who lower down their guards due to desperate situations. In these schemes, the scammers make house owners hand their house through deceit and trickery. Being working as short sales expert in Temecula, I have witnessed fraud cases where the house owners were unaware of the fact that they were signing their homes away instead of new mortgage documents. IN worst cases, scammers even forge the signature of the house owner and this kind of event is identified only when it’s too late for house owners to act. 

Fake agencies charging high fees

This scam technique includes scammers who represent themselves as legitimate foreclosure & short sale consultant and financial brokers in some situations. Generally house owners are afraid of the complexity involved in foreclosures and short sales with the fear of doing something wrong. These scammers exploit this fear of house owner and charge exorbitant fees for very little service that can be easily done by the house owner himself. The best way to avoid such scams is the fact no legitimate consultant will contact you on their own and you have to contact them first. 

The main technique used by these scammers is to prey on desperation of the house owners and exploiting on their trust. In most of the cases, these agents will contact you through email, phone call, mail systems and even meet you in person. They are generally smooth talkers and they are really good in gaining trust. It is advised to stay in direct contact with your lender and they will provide reliable links for any such issues.

As an experienced shorts sales agent in Temecula, I will advise to hire an experienced realtor while working with your lender on foreclosure or short sale. These realtors are not legal bodies but they are aware of most of the situations and you can rely on them to sale safely through the overall process.