Short-Sale Scams Boom in a Recession
Learn How to Protect Yourself
The Seattle Medium ran an article yesterday on the boom in short sale scams that are ﬁlling the market. An excerpt reads: “The worst economic downturn in generations has created a perfect storm of ﬁnancial shocks: evaporating investments, foreclosures and job losses. To add insult to injury, a new generation of thieves increasingly targets the dwindling bank balances of struggling Washington residents.” Attorney General Rob McKenna said his ofﬁce is seeing a surge in marketing by questionable loan modiﬁcation programs. “Some of these businesses are operated by former sub-prime mortgage brokers or real estate brokers who charge thousands of dollars up front and promise to work with your lender to lower your mortgage payments. A homeowner can often receive the same sort of deal for free by contacting their lender or a HUD-approved housing counselor.” “This isn’t the time to let emotions drive your decisions,” McKenna warned. “Chasing a false ray of hope can drop you into a black hole. There are real experts who can lend a guiding hand – and their assistance is free.” If you are a homeowner facing foreclosure, and are considering turning to a short sale or loan modiﬁcation company for help, make sure that they meet the following guidelines developed by RE Acquisitions, a short sale specialist company that helps stop foreclosure in Portland, Oregon. • The company does not charge fees. The only companies that charge fees to the seller are scam artists who want to take your money and run. These companies ask for a fee, because they want a “guarantee” that they will make a money off of your account, regardless of whether or not your home sells. True short sale companies will not charge you a fee for your business, and instead work off of a commission structure based on their sales. This means that they do not get paid unless they obtain a successful short sale of your home. • Look for a company that pays its employees with a percentage of your sale. This means that the employees are going to work as hard as possible to get you the best price. How long have you been working with short sales or foreclosure prevention? If the answer is a short time, this can indicate someone who has recently joined this market in order to make a quick proﬁt. • Make sure the company has licensed and bonded mortgage brokers on staff. If a company does not have licensed professionals on their staff waiting to help you, then you are most likely involved with a scam. The Washington State Department of Financial institutions requires that any provider offering loan modiﬁcations be licensed as a loan originator, mortgage broker or consumer loan company. • Check to conﬁrm that lawyers, not simply sales professionals, review all contracts. Lawyers’ are the only qualiﬁed party to review these complex contracts, and they can prevent you from making several critical errors. For additional more information on short sales or preventing foreclosure, visit http://www.sellhomeowner.com.
Short Sale Scams Boom In Recession
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