Beware of Foreclosure Scams
Foreclosures can be a tempting investment but they are quite risky and owners of foreclosure homes are vulnerable to predators in the real estate market. So, you put in a lot of thought before you actually sign on the dotted line. If you want to dispose of your home, get information from at least three market agents from different agencies and who have different methods of comparative market analysis. Consulting market agents is free and can give you good ideas on what you should value your house at in order to avoid any foreclosure scams.
The most common foreclosure scam case is when a person breaks into your vacant house, changes the locks, and rents your property out. In such cases, the house is offered at a rate below it’s actual market price, the phone number is given through a voice mail and a meeting is proposed with the so-called landlord at a restaurant. Common sense tells us all that this is, of course, a scam. Another variation of this foreclosure scam is when a homebuyer gives the homeowner an amount if money worth the equity of the home. This small amount engulfs the property and it is rented out, without making any payment to the lender. This foreclosure is delayed as much as possible and the so-called landlord pockets any rents that are earned from the property. With predators like this the market, you only have your best interests at heart. So, it is up you to take the necessary precautions to not fall prey to fraudulent landlords. If their motives are genuine, it should not be a problem. The National Law Center provides a few tips about how to act when you find yourself in a bind. Keep your cool and the following tips could be of help.
1. Instead of panicking, note when you will lose legal rights on your property and try resolving the problem before the deadline.
2. Signing a contract should never be done of you are put under pressure to sign it from the landowner.
3. Seek the help of a lawyer if necessary.
4. You should not sign deals with quitclaim deeds or those that lease your home to be bought back over time.
5. Mortgage payments should be made to no one else but your lender.
6. Do not ignore your lender if you cannot pay him back. Instead contact him.
7. Never sign blank slips or documents where information can is added later.
8. Stay away from contracts, which do not clear you legally off the home loan liability.
9. In case you are not very familiar with English, you should always enlist the help of a translator.
Latest articles about Foreclosure Scams
The regulators have clamped down stringent laws for lenders – license and checks on backgrounds. Many of those who could not qualify have now either dropped out or hitched on to another ship. Previously no license was required for firms that engaged in foreclosure rescue or loan modifications. The advices given by many were dubitable. [...]
The foreclosure crisis has ravaged the entire nation but it is the Latinos that are being focused and preyed upon by the vultures or the foreclosure scammers. They sniff out those who are defaulting and are in imminent danger from foreclosure. Latino families are especially vulnerable. One of the victims is Angel Blas who had [...]
Andrew Cuomo, the Attorney General of New York is dispatching over 180 letters (cease-and-desist) to companies claiming to help foreclosure victims with a stern message of warning that they must immediately put brakes on all illegal activities. The present actions of the AG exposed the routine operations of many firms that collect illegally upfront charges [...]
Two foreclosure fraud causes scammers are facing a penalty of $3.3 million. In the eye of the storm are two business persons who tried to cheat a woman who was disabled in a so-called rescue scam, according to D.C Court of Appeals. In 2003 Maria-Theresa Wilson found herself served with a foreclosure notice. A preacher [...]
It seems seniors are not spared either foreclosures or scams related to it. A couple advanced in years, has been made to pay 65% interests. Thanks to this nefarious scheme the two are now about to lose their house in Calgary. They were made to agree to taking out a string of loans at this [...]
The Florida Bar Association is investigating the activities of an attorney of Coral Springs for involvement in foreclosure rescue scam. There are suspicions that many such lawyers have tied up with modification firms as partnership to skirt upfront legal fees. Trade regulators are continuing to file suits against lawyers involved in such types of operations. [...]
More and more house owners who were and are victims of foreclosures are coming out with foreclosure scam stories. Many companies came forward with rosy promises of helping to prevent foreclosures but ultimately nothing happens except that the victims find themselves poorer. The story of Chantae Grandsberry of Brooklyn Center is one of many. She [...]
The story of Dorothy Galbreath and foreclosure scammers is just one of the many dotting the scene – the stuff out of which novels are woven speaking of the times. Doroth, a bus driver, had been married for long 43 years when death took away her husband. He had built her a house in University [...]
