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Copyright © 2006 by
Bob Schwartz
San Diego
real estate broker
Certified
Residential Specialist
Promotions Unlimited
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Foreclosure Scams You Need To Know
The annual foreclosure statistics are going through roof due to a
faltering housing market together with an incredible increase in consumer
debt. Not only are foreclosure numbers going up in San Diego and other areas
of California, but the entire Nation experienced a RECORD number of
foreclosures and bankruptcies just last year. Anyone experiencing the
process of home foreclosure will be seeking help.
Those facing foreclosure face great emotional distress much more so than
those facing bankruptcy. The extreme stress of foreclosure causes ones
judgment to become clouded and makes it easy to buy into scammers.
It always amazes me that no matter how bad off an individual might be there
is inevitably 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 extraordinary distress of those facing foreclosure.
Scammers trying to siphon money from those facing foreclosure primarily
depend 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 handed over to the scammer, the house is then rented out
while the foreclosure proceedings remain in progress. Foreclosure
proceedings can take many months offering the scammer the potential to earn
thousands. Those who deeded over the home ultimately do not realize 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 assistance in exchange for a small fee. The “experts” will then
figure out a way to reduce 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 this 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 couple of 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 forecloser is
to remember the golden rule marketing; if it sounds to good to be true, it
probably is. If someone offers “expert” advice and support, you should do a
search for the information they offer on the internet. More than likely you
will find the very same information that the “experts” have access to but
without the price tag.
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