RED FLAGS of FORECLOSURE RELATED SCAMS
With the high number of foreclosures lately, foreclosure-related scams have exploded onto the real estate scene. Many scams are aimed at homeowners in foreclosure, investors, buyers, tenants, and other people involved in the foreclosure process.
Once a person is late on their mortgage payment- a notice of default is filed and that notice becomes public knowledge. Anyone now can contact an unsuspecting person and lure them into a scam.
The following are some red flags to watch out for:
- Asks for money upfront before providing any service
- Asks for payment only in the form of cash, cashier’s check, or wire transfer
- Asks for a transfer of title or an interest in the property
- Gives an unqualified promise to stop foreclosure or other assurances;
- Offers to buy a home for a price above its market value
- Asks for something to be done immediately without delay
- Asks for the homeowner to give a power of attorney
- Asks for signatures on a grant deed or deed of trust
- Asks for signatures without giving homeowner a lot of time to review the documents
- Asks for signatures on a document that has lines left blank
- Fails to provide copies of documents signed
- Refuses or fails to provide an oral promise in writing
- Instructs a homeowner to make mortgage payments to someone other than the lender
- Instructs a homeowner not to discuss the situation with the lender, housing counselor, accountant, attorney, family, friends, or others.
Kathy Dyer Realtor CABRE #01723710
KW Coastal Estates
Carmel Ca. 93923