Purchasing homes which are under foreclosure listings is often an attractive deal for potential home buyers who wish to make sound and wise investments in real estate. It is indeed a good option to take amidst the massive effects of economic downturn in every corner of the globe. However, one of the most essential components that home buyers must be careful with is the rampant fraudulent instances associated with foreclosure dealings. You definitely worked hard for your money and never let scammers take away so easily the investment you have labored for so long.
How does foreclosure scam works?
Here are some of the instances that signify a certain transaction as fraudulent and scam.
o Extremely high fees for services rendered to home buyers. Most scammers disguised themselves and claim their legitimacy as foreclosure consultants and therefore charges home buyers or homeowners certain fees that are often not performed in actuality or the homeowners can do themselves. Just for the services incurred, homeowners already lost big amount of money and potentially strips them of their savings if not detected and stopped immediately.
o Stealing the home from its owner. This happens when the scammer presents a new loan document for the homeowner to sign, stating that they are negotiating the mortgage and setting up the required payment plan for the foreclosure process. Scammers may let things appear this way, when in fact they are actually making the owners sign a document that sells them the property in very low price rates. Furthermore, they may go to the extent of forging the owner's signature to complete the documentation.
o Leaseback or Sale scams. For homeowners who are on the verge of losing their homes to foreclosures, scammers may take advantage of the situation and the owner's willingness to stay and hold on to their properties. What they usually do is to tell the homeowners that they will purchase the house for them to transact a new greeneasylife.com mortgage loan while at the same time the owner may rent the home for an indefinite period of time until they can buy back the property. The downfall of this scheme is that the rent payments as well as the buyback provisions are extremely high that owners can never take their property back.
How to avoid scams?
To prevent any instances of being scammed by opportunists in the huge real estate market, here are important steps to take.
o Equip yourself with substantial knowledge about foreclosure processes and fundamental information including state laws and regulated legislations on foreclosure.
o Contact your mortgage lender. It is always important to maintain an open communication line with your lender should you have trouble paying.
o Consult a certified foreclosure counselor or counseling agency. You can find lists of legitimate agents and companies that specialize in foreclosure proceedings approved by HUD.
Foreclosure is an unpleasant process to deal with in real estate, however, you can find yourself in even deeper trouble if you let scammers and fraud get in the way of your proceedings.
For more details about foreclosure scams, check phoenixmetrocommercial.com Phoenix Metro Area Commercial Property. Know more about real estate by visiting usrealty4u.wordpress.com/2009/08/25/commercial-properties-in-phoenix-metro-area-az Phoenix Metro Area AZ Commercial.
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