The other night, it was my turn to cook dinner so naturally I did a Google search for dinner recipes. After all, dads like me need a little help to bring the gang to the table and ensure that they'll stay there! Sometimes when it comes to loan modifications, most folks will take the word of the foreclosure helper -- not realizing that there are as many varieties of scams as quick pasta dinner recipes on the Internet! Today we'll discuss just three loose loan modification scam categorizes:
Phantom Helper:
The scam artist pledges to the homeowner that for a fee, he will be able to cut the owners payments by a third. Then after taking the owners money, the scammer vanishes like a waiter in an expensive restaurant - never to be seen or heard from again.
The Savior Trick:
This scam involves a con artist who offers some sort of plan or scheme to get the homeowner out of his or her predicament. One common example is the rent-to-buy scheme where the scam artist promises to take title to the property, cure the default, and rent the property back to the homeowners until they get back on their feet again and buy back the property. What in fact happens is that the scam artist reneges on these promises by, for example, not curing the default, not honoring the rent-back agreement, or selling the property to an unsuspecting buyer.
Bait-and-Switch:
The homeowner is saved from his dilemma by the generous helper who offers to bail him out. Perhaps the helper promises to take title to the property, modify the loan, and then lease the property back to the homeowner until he is able to purchase the property. Usually the scammer ends up not honoring the agreement, and does the old switcheroo. Meaning that because he is the owner, he can legally kick out the owner. Often the helper rents the property until it is foreclosed upon and keeps all the rent receipts for himself.
In addition to the above categories, there are many other types of foreclosure-related scams, including forgeries, theft, identity theft, property flipping scams, loan fraud, predatory lending practices, pyramid schemes, ponzi schemes, bankruptcy fraud, landlord-tenant fraud, short sale consulting fraud, and bank-owned property or REO fraud.
Therefore, if a helper asks for payment only in the form of cash, cashiers check or wire transfer " beware. If a helper asks you to transfer title or your interest in the property-- beware; if a helper makes an guaranteed promise to stop foreclosure or other assurances beware.
These are just some of the ways that real estate agents and their clients can distinguish between legitimate and illegal enterprises. And just as OctoMom would be wary of getting advice to have more children, when it comes to foreclosures, short sales and loan modifications, you should be extra cautious with people offering their services to help you too
Phantom Helper:
The scam artist pledges to the homeowner that for a fee, he will be able to cut the owners payments by a third. Then after taking the owners money, the scammer vanishes like a waiter in an expensive restaurant - never to be seen or heard from again.
The Savior Trick:
This scam involves a con artist who offers some sort of plan or scheme to get the homeowner out of his or her predicament. One common example is the rent-to-buy scheme where the scam artist promises to take title to the property, cure the default, and rent the property back to the homeowners until they get back on their feet again and buy back the property. What in fact happens is that the scam artist reneges on these promises by, for example, not curing the default, not honoring the rent-back agreement, or selling the property to an unsuspecting buyer.
Bait-and-Switch:
The homeowner is saved from his dilemma by the generous helper who offers to bail him out. Perhaps the helper promises to take title to the property, modify the loan, and then lease the property back to the homeowner until he is able to purchase the property. Usually the scammer ends up not honoring the agreement, and does the old switcheroo. Meaning that because he is the owner, he can legally kick out the owner. Often the helper rents the property until it is foreclosed upon and keeps all the rent receipts for himself.
In addition to the above categories, there are many other types of foreclosure-related scams, including forgeries, theft, identity theft, property flipping scams, loan fraud, predatory lending practices, pyramid schemes, ponzi schemes, bankruptcy fraud, landlord-tenant fraud, short sale consulting fraud, and bank-owned property or REO fraud.
Therefore, if a helper asks for payment only in the form of cash, cashiers check or wire transfer " beware. If a helper asks you to transfer title or your interest in the property-- beware; if a helper makes an guaranteed promise to stop foreclosure or other assurances beware.
These are just some of the ways that real estate agents and their clients can distinguish between legitimate and illegal enterprises. And just as OctoMom would be wary of getting advice to have more children, when it comes to foreclosures, short sales and loan modifications, you should be extra cautious with people offering their services to help you too
About the Author:
Real estate broker Bob Boog has 30 yrs experience in the real estate business, and has penned informative on selling property. His latest gem, Mortgage Modifications Made Easy is available for download, and a free sample can be found at his website.
No comments:
Post a Comment