Foreclosure Relief Scam With A Twist
INDUSTRY NEWS, SHORT SALES, TIPS FOR SELLERS
September 30th, 2010
The Federal Trade Commission (FTC) issued a warning to consumers regarding a foreclosure rescue scam designed to exploit financially struggling homeowners. The scam service offer promises to perform a forensic audit of your mortgage loan documents to determine if your lender complied with state and federal lending regulations. The “auditors” claim you can use the audit to:
- avoid foreclosure
- accelerate the loan modification process
- reduce your loan principal
- cancel your loan obligations
In reality, these scam artists are using half truths and outright lies to get the upfront fee of several hundred dollars according to the FTC. I have had clients from Redding/Shasta County ask me about these services and I actually spoke to one such “auditor” located in San Juan Capistrano. He wanted to charge my client several thousand dollars to conduct the audit. When I pressed him for details and a guarantee, he made it clear there was no guarantee they would find anything and the fee was non-refundable. I told my client to not pay this company a dime and we subsequently completed a short sale.
Red flags to look for and avoid include:
- guarantees to stop the foreclosure process-no matter what the circumstances are
- instructs you not to contact the lender, lawyer or credit or housing counselor
- collects an upfront fee before providing any services
- only accepts payment by cashier’s check or wire transfer
- suggests you rent your home so you can buy it back over time
- asks you to transfer your property title
- offers to buy your house for cash at an inflated price inconsistent with current market values
- pressures you to sign papers before you’ve had a chance to read them thoroughly
For legitimate help, call 1-888-995-HOPE for free certified housing counseling from HUD. The national hot line is open 24/7 to assist you in a foreclosure avoidance strategy.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL SALES EXPERIENCE
