The other day, my wife and I ate lunch at a local sushi restaurant where the sushi chef misspoke. He asked me if I wanted an order of scams (instead of clams). Of course, I graciously declined, but almost every day it seems like I hear about another real-estate-related scam. Who knows? Maybe there are as many varieties of scams as one could order in a sushi restaurant! If so, here are three categories:
Spirit Helper:
In this type of action, the scam artist offers to negotiate with the lender or perform other lender-related services for the homeowner in exchange for a fee. However, in reality, the scammer performs little or no service at all and eventually absconds with the money. Whatever services the scam artist does provide, the homeowner could have probably done on his or her own. The homeowner ends up not only losing the money, but often loses valuable time to make other arrangements to save his or her home from foreclosure.
The Rescuer Technique:
This scam involves a con artist who offers some sort of plan or scheme to get the homeowner out of his or her predicament. One common example is the rent-to-buy scheme where the scam artist promises to take title to the property, cure the default, and rent the property back to the homeowners until they get back on their feet again and buy back the property. What in fact happens is that the scam artist reneges on these promises by, for example, not curing the default, not honoring the rent-back agreement, or selling the property to an unsuspecting buyer.
Tempt and then Switch:
In this scam, the scam artist tells the homeowner to sign one thing, but the homeowner ends up signing something else altogether, such as the grant deed to the property.
In addition to these types of deals, there are many other kinds of scams, including identity-theft, loan fraud, and even elder abuse. How do owners meet these people? The helper can contact an owner by mail or telephone solicitation or sometimes an owner will contact a scammer via a We Buy Homes or Stop Foreclosure Now sign on a telephone pole.
If you are concerned about a loved one working with a foreclosure helper, some tell-tale signs to watch for include: if a helper asks for payment only in the form of cash, cashiers check or wire transfer ” beware. If a helper asks you to transfer title or your interest in the property– beware; or if a helper makes an guaranteed promise to stop foreclosure or other assurances”beware.
Just as one Dad was wise to do a Google search for delicious dinner recipes; when it comes to foreclosures, short sales and loan modifications, you might wish to check online and do some homework to help you too!
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