|
|
San Diego real estate library
Foreclosure Scams You Need To Know
The annual foreclosure statistics are going through roof due
to a faltering housing market together with an great increase in
consumer debt. Not only are foreclosure numbers increasing in
San Diego and other areas of California, but the entire Nation
experienced a RECORD number of foreclosures and bankruptcies
just last year. Anyone gong through the process of home
foreclosure will be seeking help.
Those facing foreclosure face tremendous emotional distress much
more so than those facing bankruptcy. The extraordinary stress
of foreclosure causes ones judgment to become clouded and makes
it easy to fall victim to scammers.
It always amazes me that no matter how bad off an individual
might be there is without doubt another individual willing to
exploit that persons suffering for their own financial gain. Con
artists and scammers have wasted no time in preying upon the
greatly distress of those facing foreclosure.
Scammers trying to siphon money from those facing foreclosure
primarily rely upon two scams: the equity scam and the fake
counseling scams.
An equity scam is where an unsolicited offer is made to those
dealing with foreclosure to find a buyer for their homes and
quickly solve their financial problems. The individual making
the offer will even offer to take over the debt in exchange for
their deed to the house.
Once the house is given over to the scammer, the house is then
rented out while the foreclosure proceedings continue in
progress. Foreclosure proceedings can take many months allowing
the scammer the potential to earn thousands. Those who deeded
over the home ultimately do not learn of the scam until their
home has been auctioned off. They are then stuck with the
original mortgage debt and the loss of their home.
With the fake counseling scam, an unsolicited offer is made for
“expert” advice and help in exchange for a small fee. The
“experts” will then find a way to decrease your monthly payments
and even reduce the original mortgage debt. What really ends up
happening is that the money is turned over to experts who give
advice that could have found freely been on the Internet.
Often times the consulting fees for such a service can cost
hundreds and even thousands of dollars. The best a consultant
can really do is get you a short grace period, usually of no
more than a few months. Again, information for the grace period
could have easily been obtained from the internet or by a quick
trip to the local library.
The easiest way to keep away from being scammed while enduring
foreclosure is to remember the golden rule marketing; if it
sounds to good to be true, it probably is. If someone offers
“expert” advice and help, you should do a search for the
information they provide on the internet. More than likely you
will find the very same information that the “experts” have
access to but without the price tag.
San Diego real estate library |
 |
