Since the beginning of the housing crisis in
2008, millions of homeowners have found themselves owing more on their mortgage
than the home is worth. For homeowners in this circumstance, there is a lot to
worry about. They not only have to worry about losing their homes, but they are
also susceptible to fraud.
Unfortunately, the mortgage crisis has opened the door for
fraudsters to take advantage of homeowners in distress. This is more common
than most people realize because much of the fraud is well disguised and can
seem legitimate.
For people in this
situation, the best way to avoid the most common types of Mortgage Relief Fraud
is by consulting professionals who are specifically trained to deal with
distressed homeowners. If you or someone you know is in this situation, don’t
be the next victim.
From Interthinx Mortgage Fraud Report from Q4 2012:
The top 5 states for
mortgage fraud in 2012 were:
NEVADA
|
ARIZONA
|
FLORIDA
|
NEW JERSEY
|
CALIFORNIA
|
There are 5 common ways that con artists
and scammers will try to take advantage of you.
Learn about these so that you
will know what to watch out for:
#1 CHARGING YOU
UPFRONT
One of the most important things that distressed homeowners
need to remember
is that they should never be asked to
pay anything up front. Period. In
fact, the only people who should
ever
ask you to pay any money at all is the lender that owns your mortgage or
servicer who collects for the lender. Even a
real estate agent will only make money off
the commission that comes after a sale is com- plete. If someone asks
you to pay them money to
help you out of your situation, be very suspicious.
#2 GUARANTEES
No one can guarantee to
save
you from your mortgage troubles. While there are more solutions today than ever before, avoiding foreclosure is still a difficult process. A
qualified agent can give you
advice and help you through
your options, but if someone guarantees
you success, chances are they are trying to take advantage of
you.
#3 CHARITY OR
GOVERNMENT AFFILIATION
While there are housing relief
charities that exist, a
common fraud tactic is for the con artist to pre- sent themselves as a non-profit or a representative of
the government. They will also use seals and government names to make them seem more legitimate. Be
leery
of anyone approaches you
like this and speak to your lender before
you take any action.
#4 ASKING YOU TO TRANSFER YOUR DEED
Under no circumstances should you transfer the deed to your property
to anyone but the bank that owns your mortgage. Some people
will ask you to do this under the promise
that they will save the property. The problem is that once you sign the deed over, you
forfeit all legal rights to the property.
#5 ADVISING YOU TO STOP CONTACTING YOUR LENDER
In any circumstance, your lender will ultimately make the decision
as to what housing relief
options you will be eligible for. When scam artists ask you to stop contacting your lender, they are doing so specifically so that you will be uninformed and forced to rely on them. Never cut
off contact with your lender. Not only will you be uninformed, it will actually
make it more difficult to come up with any solution at all.
It can seem
daunting, but despite the fact that there are people who may seek to take
advantage of homeowners in this circumstance, the situation isn’t hopeless! The
fact is that there have never been more options for distressed homeowners than
there are today. The banks and the government have been aggressive in creating
alternatives for homeowners in danger of losing their homes.
One of the most
common options is a short sale.
This is when the bank agrees to allow the home to be sold for less than the
amount owed on the mortgage. Banks have become increasingly willing to take
this option because the amount of money the home sells for is typically greater
in a short sale than at a foreclosure auction.
For homeowners,
a short sale is often the best solution because it can be much better for
their credit than a foreclosure and many times they can walk away from the home
without the financial burdens that will make it difficult for them to move on.
As a Certified
Distressed Property Expert, or CDPE, I have been specifically trained to help
homeowners learn what the best solution for them is, and I can also help them
avoid the common scams above. It is my mission to help as many homeowners as
possible.
