For people who are going through foreclosure or are about to they need to know that things can get worse. Foreclosure rescue scams have become the flavor of the day.
The ads look or sound something like this:
"Stop Foreclosure Now!”
“We guarantee to stop your foreclosure.”
“Keep Your Home. We know your home is scheduled to be sold. No Problem!”
“We have special relationships within many banks that can speed up case approvals.”
“We Can Save Your Home. Guaranteed. Free Consultation”
“We stop foreclosures everyday. Our team of professionals can stop yours this week!”
Here are some red flags:
Guarantees to stop the foreclosure process – no matter what your circumstances
Instructs you not to contact your lender, lawyer, or credit or housing counselor
Collects a fee before providing you with any services.
Accepts payment only by cashier’s check or wire transfer.
Encourages you to lease your home so you can buy it back over time.
Tells you to make your mortgage payments directly to it, rather than your lender.
Tells you to transfer your property deed or title to it.
Offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale.
Offers to fill out paperwork for you.
Pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.
One of the most common scams is someone promising to rescue a home owner from foreclosure, telling the home owner that they will take care of everything, collecting a fee from the home owner and doing nothing.
For legitimate help from people who are not running scams try Hope Now or the City of St. Paul foreclosure prevention program.
Banks really don't want your house. They can't sell it because banks can't sell real estate. The best time to contact your lender is before the first late payment. There are people who are worried about losing their homes who pick up the phone and contact a total stranger and explain their situation and how badly they need help. They make it easy for people who are running scams to find victims.
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Totally agree about the necessity to get this information out there. This is a major issue. In my opinion the worst offenders are bankruptcy attorneys. They tell people they can help them prevent foreclosure but then when it comes down to it all they can do is delay it.
Hi Teresa it’s Lenny with Sundream Estate in Marbella Spain, also an old member in REW Forum and I found your blog there.
It’s a new form of “Nigeria letter”, we have the same e-mail, letter, advertisements, phone calls to the house owners over here in Europe.
I love those yellow signs in the street…Stop Foreclosure and a phone number. What are people thinking….Like, Driving along and wow…a sign, if I am going to pick up my cell, dial and be rescued! If someone is in a financial mess, contact a legit resource. You owe it to yourself!
Teresa – Spot on! I recently represented a seller in a short sale. He had hooked up with one of these type of scammers before he contacted me. The contract this guy gave him to sign was a joke. The liabilty was all on the seller and he would have been foreclosed on.
People facing foreclosure are looking for a rescue and you offer great advice about how NOT to find it.
Always the knowledgeable, kick ass, consumer focused Realtor. Good on yah T.
It is very unfortunate that people would take advantage of others in a time of distress. Shouldn’t the government/lawmakers get involved in this? These schemes should be illegal right?
I hate the fact that there are people out there that have to scam people. it really hurts the people like us that are out there to help.
Mike – Actually it hurts the people who are losing their homes a heck of a lot worse.
I totally agree agree with you. I am really sad for those unfortunate people.