Mortgage Modification scams

Mar9 Filed Under Real Estate by Bob Boog There are many different types of loan modification, short sale and foreclosure-related scams, and new types of scams sprout up every day. There are probably as many scam categories as octuplet mother Nadya Suleman has babies, but today we’ll discuss just three of them. These activities can be loosely described as follows: Phantom Helper: The smooth-talking scam artist takes a fee from the homeowner, assuring him that he will be able to easily slice hundreds from the owners payment. Ten phone calls later, the owner realizes the helper has deserted him with his money, and has vanished completely. Bail-Out: The homeowner is saved from his dilemma by the generous helper who offers to bail him out. Often the helper needs to take title to the property in order to modify the loan, and promises to lease the property back to the homeowner.

Then when the owner is able to purchase, he will be able to purchase the property back again. Sounds good, right? Usually the scammer ends up not honoring the agreement, and simply kicks out the owner. Or the helper rents out the property until it is foreclosed upon and keeps all the rent receipts for himself. 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 money upfront before providing any service ” beware. If he asks for payment only in the form of cash, cashiers check, or wire transfer”beware. If he asks for a transfer of title or an interest in the property”beware. If he gives an unqualified promise to stop foreclosure or other assurances “beware. If he offers to buy a home for a price above its market value–beware. Just as one would be wary of eating raw fish as a restaurant with a quality rating of D ” 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: Bob Boog is a real estate broker and author of 3 books on selling homes. His latest book is called Mortgage Modifications Made Easy and provides an informative guide on doing a loan modification for both agents and homeowners. Make sure you download a free sample copy of this excellent and informative book at his website.Comments

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