Red Flags of Foreclosure Related Scams

Red Flags on Mortage related scams

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:

  1.  Asks for money upfront before providing any service
  2. Asks for payment only in the form of cash, cashier’s check, or wire transfer
  3. Asks for a transfer of title or an interest in the property
  4. Gives an unqualified promise to stop foreclosure or other assurances;
  5. Offers to buy a home for a price above its market value
  6. Asks for something to be done immediately without delay
  7. Asks for the homeowner to give a power of attorney
  8. Asks for signatures on a grant deed or deed of trust
  9. Asks for signatures without giving homeowner a lot of time to review the documents
  10. Asks for signatures on a document that has lines left blank
  11. Fails to provide copies of documents signed
  12. Refuses or fails to provide an oral promise in writing
  13. Instructs a homeowner to make mortgage payments to someone other than the lender
  14. Instructs a homeowner not to discuss the situation with the lender, housing counselor, accountant, attorney, family, friends, or others.

Avoiding Mortgage Scams

Making Home More Affordable Program

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

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