Outwardly it can be hard to spot a foreclosure scam artist.?? In fact most scam artists do their best to appear clean-cut, trustworthy, helpful and patient.?? Their front companies often have names like Community Home Savers or Housing Helpers or some other altruistic name, and may even claim to be working as a not for profit organization.
Scam artists depend on "affinity marketing", that is to say they claim to come from the same racial, social, or religious background as their intended victims.?? They may use military terms and mannerisms and claim military service when trying to draw in military families, or may use religious terms or certain religious clothing or icons when targeting religious people, or in some extreme cases join a religious group to gain their trust.?? Scam artists may also purport to represent a government program or service, or even offer money back guarantees or government aide.
The best way to spot a scammer though is using common sense and listening??to yourself when you??notice the red flags or the alarm bells go off.?? Remember that most scammers prey on people who are in desperate situations and are looking for a quick solution or instant fix.????
Keep these??Red Flags in mind??when you??are dealing with anyone who you suspect might??be a foreclosure scammer.??
- Asks for money upfront before providing any service;
- Asks for payment only in the form of cash, cashier's check, or wire transfer;??
- Asks for a transfer of title or an interest in the property;??
- Gives an unqualified promise to stop foreclosure or other assurances;??
- Offers to buy a home for a price above its market value;??
- Asks for something to be done immediately without delay;??
- Asks for the homeowner to give a power of attorney;??
- Asks for signatures on a grant deed or deed of trust;??
- Asks for signatures without giving homeowner a lot of time to review the documents;??
- Asks for signatures on a document that has lines left blank;??
- Fails to provide copies of documents signed;??
- Refuses or fails to provide an oral promise in writing;??
- Instructs a homeowner to make mortgage payments to someone other than the lender; or
- Instructs a homeowner not to discuss the situation with the lender, housing counselor, accountant, attorney, family, friends, or others.
??Next week: How Foreclosure Scams Work
Visit HouseRebate.com to learn more about San Diego Foreclosures.
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