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Be careful not to trust a thief?
Scammers know that people
in trouble make easy victims. They're swooping in and
offering to "help" borrowers -- and ending up with their
house.
Ask
yourself the following questions:
When you look up the company
with the BBB, Google or Yahoo, do you find complaints or
warnings from previous clients?
Are you being asked to sign a
"Quit Claim Deed" or other document that transfers ownership
of your home?
Do they require a large
up-front payment, with no guarantee of ever performing the
services they promised?
Are they asking you to send
money without a contract or agreement that outlines the
details of the services that will be performed on your
behalf?
If you
answered yes to any of these questions, you are most likely
being scammed.
Scam No. 1
The phone rings with a bailout proposal.
They offer to buy the house and you stay, paying rent in two
years they sell the house back to you.
they refinance the house and pull the equity out, while you
pay rent, later the sheriff comes and kick you out.
Do's and don'ts:
- Don't fall for
promises like "We'll save your credit";
"We'll buy your house 'as is'"; or
"We'll get you a new mortgage with low
monthly payments."
- NEVER sign away
ownership of your property
(Sometimes called
a "quit claim deed") to anyone
without the advice of lawyer you trust.
"When people get behind on their loan
payments, they get a bit desperate, but
the answer is not putting someone else
on your title.
- Beware of any
home sale contract where you aren't
formally released from liability for
your mortgage. Also, make sure you know
what rights you're giving up and that
you agree to giving them up.
Scam No. 2
Let's assume
you're way behind on your mortgage payments and are now
facing foreclosure.
An individual or Company approaches and offers to help
-- then charges you thousands of dollars for various
administrative duties like filing forms and phone calls,
or else keeps simply promising a big rescue later.
You can probably guess what's really going on: The
"helper" isn't really doing anything at all to stop your
foreclosure despite collecting thousands from you. By
the time you figure out you've been hoodwinked, it's
often too late to stop the loss of your house.
This scam one is very common in South Florida. Beware of
upfront charges.
They will tell you and convince you, that because you
are not making mortgage payments, you can afford the
Fee's to save your property.
Do's and don'ts:
- Don't call
for assistance from one of those
ubiquitous signs on telephone poles
that advertise help. Chances are,
that's not where help lies.
- Do proceed
with caution, if a company or
person:
- Describes itself as a "mortgage
consultant," "foreclosure service,"
or something similar;
- Collects a fee before giving any
services;
- Advertises to people whose homes
are listed for foreclosure,
including anyone who sends fliers or
solicits door-to-door; and says you
should make home mortgage payments
directly to them or to their company
instead of your mortgage lender.
- Don't
panic. Get full information on the
foreclosure process in your state.
Make sure you know ALL deadlines --
for court, for document filings,
etc. States usually have
associations that can offer free
advice.
Scam
No. 3
In this scam, which Foreclosure
Expert calls the "bait-and-switch routine,"
con artists actually trick a homeowner into
signing over the deed to a home -- without
his knowledge.
How could somebody fall for this you say?
These shysters get their victims to sign
incredibly complicated legal documents that
resulted in their property being transferred
to entities such as trusts. "Most attorneys
can't understand these trust agreements. And
if a criminal can't get the signature,
forgery goes a long way in real estate these
days.
Do's and don'ts
-
Never sign a contract
under pressure. Always
know exactly what you're
signing. Take your time
to review the paperwork
thoroughly -- ideally
with a lawyer who only
represents your
interests.
-
Never make a verbal
agreement. Get all
promises in writing and
get full copies.
Finally Deal with
well know Company Names
If the company is new,
you never heard of it,
its small with a few
employees and no assets,
it's probably a scam.
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