Homeowners in trouble are getting ripped off, big time. “Rescue scams” are at an all-time high. Desperate for a light at the end of the tunnel, homeowners think they see one–but it’s an oncoming train.
In many cases, the “rescuer” promises to take over payments in exchange for temporary deed to the home until the owner can afford to pay again. Only problem is, the owner never gets the house back.
Another scam is telling the homeowner that the new loan he or she is signing will pay off the old loan. The scammer gets the money and doesn’t pay off the old loan. Or, worse yet, the scammer temporarily take ownership of the house, then doesn’t give it back.
There are also scams on the buyers’ side… companies promise foreclosures for 50 percent off for $10,000 seminars, only to lead buyers to auction houses where the company is getting 5 percent in kickbacks.
Here are some tips to avoid being scammed:
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1. If it sounds too good to be true, it most likely is.
2. The only entity that can remedy your home-loan situation (if you don’t refi) is your bank. If your lender is WaMu, for example, you need to call WaMu.
3. Many of these companies promise to refinance. In almost all cases, going to a broker isn’t in the best interest of the homeowner. Go directly to a lender if you want to refi; then you know you won’t be scammed. Lenders must disclose all costs up front.
4. Don’t wire money or use any method other than escrow companies to send money regarding your home, ever! Legitimate escrow companies act as third parties that make sure issues like what is noted here don’t occur.
5. Anyone who says he or she can repair your credit is likely not being honest. If that is part of the deal, walk away immediately. A foreclosure does not “come off your credit” as easily as a 30-day late payment on a credit card does. It just doesn’t work like that.
And finally,
6. Ignore anything you find on the internet. The internet is hard to regulate, and by the time the FBI catches on, the site is down and hundreds of people have been ripped off. Dont respond to e-mail solicitations or click on any links pertaining to rescue scams.
Dani
This entry was posted on Wednesday, March 26th, 2008 at 11:49 am and is filed under Avoiding Foreclosure, foreclosure scam, scam, seller scam. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.Leave a Reply
