Foreclosure Scams are in South Orange county to.
Today here in our three Laguna Cities- Laguna Niguel, Laguna Beach and Laguna Hills there are currently 305 homes advertised on the MLS as Short sales and 29 Bank owned Homes or (REO’s) At least once a week I hear a horror story of a home owner that has been ripped off by a phony foreclosure company. They make out to be a legitimate company but turn out to be nothing more than scam artists stealing thousands of dollars from innocent people. Unfortunately when there is blood in the water the sharks will come out to pray.
Loan Modification scams
Talk about scams and the booming scam market the opportunities are huge in the Real Estate Industry. Some of the same predator’s that helped get consumers into this mess are so called Loan Modification Experts now. The only differences is the company name has changed. Whether is a law firm or a so called government agency, distressed home owners need to do their home work first and cross their fingers. It’s a sad case out there and it’s going to take some time before the authorities get a grip on it. Beware of any company that asks for an upfront fee, or guarantees success because there is no guarantees with a Loan Mod. Over the last few years I have seen so called Loan Modification Companies speak to distressed home owners even if they are listed with a Real Estate Agent, and talk them into a phony Loan Mod holding up the listing with no results. After the home owner realizes their mistake and continues to try and sell the property, the bank turns around and forecloses leaving the home owner on the street with a ton of debit.
Big Brother is watching
The FBI has been looking into these cases and so far almost 4,000 cases have been reported. According to the Federal trade commission, these scam artists advertise guarantees and high success rates to mislead consumers about their services. Some charge upfront fees to begin their work on a file and then they move on to their next victim leaving the innocent consumer in the water without an Orr. Some have websites that look like government agencies with government logos etc, don’t be fooled by this, only real government agencies have .gov and anything other than .gov should be thoroughly investigated before contact.
Be safe when asking for help
To be sure you will not be scammed, Speak to a local Realtor. Realtors are licensed by and strictly governed by the Department of Real Estate, (DRE) and the U.S. Department of Urban Development (HUD). These agencies are in place to protect the consumers and licensed Realtors have a fiduciary duty to protect their client and look out for their best interests. A Realtor should not ask you for an upfront fee but if they do check em out on the DRE website to see if they are licensed and the are who they say they are. If you would like more information on this topic or are in need of advice don’t hesitate to contact us. We will point you in the right direction.
Call Brett Dalbeth