As a home owner facing foreclosure, you may be desparate to find a way out - a way to turn things around and get back on your feet. But don't let that desparation cloud your judgement or stop you from doing your homework when approached by someone promising to "fix everything" and "keep you out of foreclosure."
Here is the latest case involving scam artists preying on home owners facing foreclosure (via InmanNews):
"Federal officials announced the indictments of 20 people Thursday in two California-based foreclosure rescue and equity-stripping schemes that allegedly netted more than $12 million from more than 100 victims who were left without their homes.
Prosecutors said victims believed that they were making rental payments to "investors" whom they agreed to add to the title of their home. The "investors" were actually straw buyers who often replaced homeowners on the title. After taking out a new mortgage to extract the home's equity, the defendants would sell the victims' home, stop making the mortgage payments, or begin eviction proceedings against the victims, prosecutors said."
Be careful out there, do your homework and remember...there is no quick fix.
You make excellent points. I agree 100% with your comments, being in the business, and doing it the morally correct way, and the legal way, I see a lot of scam artists out there. Most homeowners that can no longer afford their mortgage payments, start to go in panic mode. And when someone is not thinking rashionally, it is easy to become victimized. I encourage homeowners to speak with attorney's while in this perdicament. If we keep educating homeowners, hopefully less will have problems with scammers.
Posted by: Lauren | July 22, 2008 at 01:51 PM
Good stuff! Stumbled upon your post while doing some research about this topic. You definitely seem to be an authority in the subject. Buyer beware of foreclosure fix and flips, as they can be VERY bad work.
Posted by: Short Sale real estate agent | July 13, 2011 at 01:33 AM