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.