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Home arrow News arrow Homeowners Warned about Real Estate Scams
Homeowners Warned about Real Estate Scams Print E-mail
Tuesday, 25 July 2006
Victims include retired folks strong-armed into signing papers under the misconception that they are getting a reverse mortgage. Or a desperate homeowner who can't make the monthly adjustable mortgage payment and transfers the deed to get financial release, the BBB says. Or, the victim might be a family, saddled with huge medical expenses, facing foreclosure and succumbing to a stranger's offer to buy their property.

The BBB urges homeowners who are in financial trouble to explore every alternative to keeping their homes and avoid falling victim to ``easy'' solutions. First thing to do, the BBB says, is to talk to your mortgage lender to explain your situation and ask how to restructure your loan payment.

Victims later learn that they signed a quit-claim deed to their home. If a foreclosure ``rescuer'' or mortgage ``broker'' instructs you not to contact your mortgage company or your attorney, that's a warning sign. Furthermore, why would you agree to cease contact with your attorney?

You should never sign a contract under pressure and never sign away ownership of your property. Ask a trusted family member, your attorney or a financial professional to review any paperwork you are asked to sign. You can sell your house, but before agreeing to any deal with a business or firm to buy your home, contact the BBB at (408) 278-7400 to request a report on the company. Also you can check the Web sites of the California attorney general and the California Department of Real Estate.

By Mabelle Sese

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