Avoiding Scams

The best approach for avoiding foreclosure-related scams can be described in 2 words- Get Tough. Scam artists seek you out. They hope to take advantage of you when you are distressed about possibly losing your home or unable to deal with complicated issues surrounding foreclosures. As one homeowner who fell victim to a foreclosure rescue scam said, "When you are down and out you'll believe anything." As difficult as it is to face foreclosure, it will be a lot worse if you get mixed up with unscrupulous people. S0 get tough by vigilantly watching out for scams. Here are some things to watch out for:

1) Appearing to be legitimate:

Outwardly, scam artists do not appear or act dastardly. On the contrary, scam artists may look nice and clean cut, and they may seem to be kind, helpful, and trustworthy men and women. Scam artists often engage in "affinity marketing" which means they attempt to lure people by belonging to, or pretending to belong to, the same racial, religious, or social or other group as their victims.

2) Asking for money up front before providing service:

One of the tell-tale signs of a possible scam is when someone makes a promise or representation, but asks you for money up front before delivering on that promise. If you pay a scam artist, you're unlikely to see either your money or that scam artist again.

3) Making unqualified promises:

To lure you out of your money and home, a scam artist will often say whatever it is you want to hear in a very convincing way. If your facing foreclosure the scam artist is likely to assure you that he or she can stop it, fix it, or make the problem go away. If it sounds too good to be true, it usually is.

4) Lacking credentials:

With certain exceptions, someone who charges you a fee to negotiate with your lender on your behalf must be licensed with the California Department of Real Estate. You can do a quick "License Status Check" here at the DRE website. You should also conduct further investigations before doing business with someone, such as checking public records, the Better Business Bureau, and try a Google search on the internet. You should also ask for verifying references, and going to their business address to see if it exists.

5) Asking you to do something immediately without delay:

Scam artists will push you to make quick decisions, often by making up fake deadlines. They don't want you to have a chance to think things out, go over paperwork, or discuss their scheme with your family, friends, lender, REALTOR®, or anyone else.

6) Asking for your signature:

Whenever you sign a document make sure you know what you are signing. Do not sign anything unless you've had a chance to read and review the document. Do not sign if a document has lines left blank. Do not let someone tell you that something in the document doesn't matter or doesn't mean what it says.

7) Asking you to do something improper or illegal:

Scam artists may ask you to do something improper or illegal. Proposing something a little improper may make their promises of stopping foreclosure more believable to you. Once you agree, you will be less likely to blow the whistle on the scam artist if you too are involved in the fraudulent scheme. Do not compromise your position by getting involved in anything underhanded.

8) Brushing aside your questions:

To help smoke out scam artists, ask a lot of questions, even if you know the answers. Be leery of doing business with someone who brushes aside your questions or gives wrong answers. An excellent way to protect yourself against scams is to learn as much as you can about foreclosure related matters. Because scam artists prey upon ignorance, the more you know about foreclosures, the less likely you'll be duped.