Short Sale vs Forclosure

Foreclosure rescue scams are big business right now, not just in California but nation wide.

A man in Michigan experienced one such scam. After his property went into default, he received calls all day long from people saying they could save my home, One group promised help if he gave them $3,800. He borrowed money from family and was all ready to pay, until his suspicions were aroused by the frequency of their calls. Luckily he went with his gut instinct and advice from a younger sister and got in touch with a local nonprofit counseling agency and was told that this was a scam.

The people said they would negotiate with the lender on his behalf for a fee. While such scams are on the rise, law enforcement agencies are overwhelmed.

Rescue scams include extorting money with promises of help that never materialize along with tricking borrowers into signing over part or all of their property. Often, the owners think they are signing a refinancing when they are actually signing a deed of transfer.

All of these scam artist seem like nice young men and woman. But they are wolves in sheep’s clothing. NEVER NEVER NEVER pay someone to help you out of default or foreclosure. A reputable short sale expert or foreclosure broker will never charge you up front for anything.

NEVER NEVER NEVER sign a blank document. If you don’t know what the document is - ask to have your attorney or someone else review the paperwork before signing. Deeds will require a notary to acknowledge the document.

NEVER make payment to anyone who says they will make them for you.

Many rescue scams prey on borrowers' fear and desperation when they end up in foreclosure. A reputable Short Sale Expert or Broker will not let that happen if at all possible. On that same note, not all Short Sales will be satisfied and you may go to foreclosure after all. Some banks will just not work with you to sell short. There is only one way to find out and that is to try. So although you may still end up foreclosed upon at least you gave it a valiant effort and to that you should be proud of.

What are your thoughts on the subject? Has this ever happened to you? I look forward to your input.