Red Flags for Foreclosure Rescue Scams
HOMEOWNERS BEWARE: Foreclosure Rescue Scams
Brought to you by your Realtor® Lauri Beamish and the California Association of Realtors®
Legitimate Resources
If you are at risk of foreclosure or have already received a foreclosure notice, you should contact your lender immediately.
Homeowners also may seek the advice of a reputable housing, financial or credit counselor, attorney, or other qualified professional.
Homeowners may visit the U.S. Department of Housing and Urban Development (HUD) Web site to view
its Guide to Avoiding Foreclosure and its list of California HUD-approved housing counseling agencies. In addition, the non-profit Homeownership Preservation Foundation has a 24/7 toll-free Homeowner’s HOPE Hotline at (999) 995-HOPE.
Report Fraud
If you have been a victim of a foreclosure-related scam or approached by a scam artist, you may report the incident to the following organizations and government enforcement agencies:
• California Department of Real Estate
• Department of Housing and Urban Development (HUD)
• Federal Trade Commission (FTC)
• Your local Better Business Bureau
With the recent rise in foreclosures, foreclosure-related scams have exploded onto the real estate scene. These so-called “foreclosure rescue companies” claim they will help save your home, but in reality are out to make a profit — at your expense.
If you are at risk of or in foreclosure, you should be on the lookout for foreclosure scams. Here are some of the red flags to watch out for:
• Asks for money upfront before providing any service
• Instructs you not to contact your lender, lawyer, housing
counselor, family, friends, or others
• Asks for mortgage payments to be made directly to his or her
company or a bank account set up by that person, rather than
your lender.
• Requires payment only in the form of cash, cashier’s check,
or wire transfer
• Promises to stop the foreclosure process, no matter the
circumstances
• Advises you to transfer your property deed or title to his or
her company
• Offers to fill out paperwork for you
• Asks for something to be done immediately and without delay.
This includes pressuring you into signing paperwork that you
have not had the chance to read thoroughly or do not fully
understand
• Encourages you to lease your house and buy it back
over time
• Offers to buy your house for a fixed price that is not set by the
housing market at the time of sale
• Asks for you to give a power of attorney
• Asks for signatures on a grant deed or deed of trust
• Asks for signatures on a document that has lines left blank
• Fails to provide copies of signed documents
• Refuses or fails to put an oral promise in writing
Copyright© 2009 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Permission is granted to C.A.R. members only to reproduce this material for non-commercial purposes. Other
reproduction or use is strictly prohibited without the express written permission of the C.A.R. Legal Department. All rights reserved.
The information contained herein is believed to be accurate as of April 9, 2009. It is intended to provide general answers to general questions and is not intended as a substitute for individual
legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney.
If you have any questions or I can help in any way please either contact me direct or leave a comment below. Leaving a comment will hopefully help many.
Lauri Beamish DRE #00950917
October 23rd, 2009 at 5:57 pm
Did you know that homeowners are illegally being foreclosed on especially in Trustee States?
If you are a homeowner with a Notice of Sale, 3 Day Notice to Vacate, or received the Unlawful Detainer and/or a realtor that is trying to help facilitate a short sale or a loan modification I can help you delay that sale/auction date. I can help you with the eviction delay.
It is well known that banks are illegally foreclosing on homeowners in Trustee States such as California, Arizona, and Nevada since the foreclosure process is lightly monitored by government agencies.
In Judicial Foreclosure states, a judge reviews the legality of the foreclosure proceedings to ensure the homeowner is being protected against greedy lenders and yet still the lenders are not properly following the foreclosure laws correctly (see this article: http://www.nytimes.com/2009/08/31/nyregion/31judge.html?_r=2).
In Trustee States, lenders employ a “third party” trustee company to replace the legal function of a judge and orchestrate the foreclosure process. If banks are not legally foreclosing when they know a judge reviews the case what do you think they are doing when they only have to go through a trustee that they pay? And what is more interesting, the trustee company is liable for the foreclosure proceedings but who is going after the trustee companies to review the legality of these foreclosure packages? You guess it! Yes, No one is..!
Filing bankruptcy is not the best option for you. It sure helps delaying your foreclosure for 30-45 days but once your bank files a motion to lift the stay they can proceed with the debt collection therefore foreclosing on your home. You will end up losing your home and with a bankruptcy on your credit history.
I hope this helps. Good luck!
We offer different foreclosure delay tactics, credit repair and loan re-write program. To find out more about our services you may want to visit http://ASNDinc.com/
Yamen Elasadi
yamen@ASNDinc.com
October 25th, 2009 at 5:03 am
To anyone reading the comment from Yamen @ ASND, Inc. – I do not know this company and do not endorse it in anyway. I approved the comment here as just another possible option, but suggest you do your research with the Better Business Bureau, the Ripoff Report, etc. The one thing they do have going for them is they do not charge you until after they have performed the service they say they will.