With the large number of homeowners looking for guidance during the foreclosure process, foreclosure related scams have erupted onto the real estate scene. These "foreclosure rescue companies" claim they will help save your home, but actually they are only out to make a profit - at your expense.
If you are facing a foreclosure, here are some "Red Flags" to watch out for:
- Asks for money upfront before providing any service.
- Instructs you not to contact your lender, lawyer, housing counselor, family, friends or others.
- Asks for mortgage payments to be made directly to his/her company or a bank account set up by his/her company, rather than your lender.
- Requires payment only in the form of cash, cashier's check or wire transfer.
- Promises to stop the foreclosure process, no matter the circumstances.
- Advises you to transfer your property deed or title to his/her company.
- Offers to fill out paperwork for you.
- Asks for something to be done immediately and without delay. This includes pressuring you to sign paperwork that you have not had the chance to read thoroughly or do not fully understand.
- Encourages you to lease your house and buy it back over time.
- Offers to buy your house for a fixed price that is not set by the housing market at the time of sale.
- Asks for you to give a power of attorney.
- Asks for signatures on a grant deed or deed of trust.
- Asks for signatures on a document that is incomplete or has lines left blank.
- Fails to provide copies of signed documents.
- Refuses or fails to put an oral promise in writing.
If you have been a victim of a foreclosure-related scam or approached by a company asking for the items above, you may report the company to the following organizations:
California Attorney General: http://ag.ca.gov
California Dept. of Real Estate: www.dre.ca.gov
Dept. of Housing & Urban Development: www.hud.gov
Your local Better Business Bureau: www.bbb.org
Source: California Association of Realtors
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