How To Identify a Foreclosure Rescue Scam
It seems as though whenever people fall on tough times, it brings the worst out in some greedy individuals and the foreclosure crisis is no exception. We have seen a number of scams from people who claim they can help you save your home, when in fact they are trying to profit at our expense. The California Association of Realtors produced a list of items that should send up a red flag if you are approached by “the foreclosure rescuer”.
Foreclosure Rescue Precautions
- If you are asked for money up front. You would be wise not to pay any money until you have received the service promised.
- Asks that you send your mortgage payments directly to them and they will in turn pay your mortgage. The money they receive from you goes into their pockets.
- Promises/guarantees they can stop the foreclosure process. There is no way they can guaranty this, until they have spoken to your lender to get such a confirmation
- Advises you to transfer your property deed or title to their company.
- Offers to fill out paperwork for you. Always fill out the paperwork and if unsure have a friend, family member or attorney review the paperwork.
- Advises you not to discuss this with family, friends, attorneys or real estate agents.
- Asks you to give them a power of attorney
- Asks for signatures on a document that has lines left blank – which they will fill in at a later time, items you are unaware of, but they have your signature
- Pressuring you to sign paperwork which you have not read or even understand
- Offers to buy your house for a price that may not be in line with market data. If you are unsure of this, contact a local real estate agent to give you a market analysis.
- Does not give you copies of documents you signed
The place to report any suspicous activity:
- California Attorney General, http://ag.ca.gov
- California Department of Real Estate, www.dre.ca.gov
- Federal Trade Commission; www.ftc.gov
- Local Better Business Bureau, www.bbb.org
Filed under: Real Estate
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