Scammers succeed because homeowners lack adequate knowledge about foreclosure.
Every disaster brings out the best and the worst in people.
After any disaster there are those who look for opportunities to take advantage of the vulnerable. Foreclosure is a financial disaster that similarly brings out predators looking for opportunities.
Before I discuss predators, I need to emphasize that there are many decent, honest and legitimate investors who make their living by purchasing homes that are about to be foreclosed. These investors are truly “white knights” who can rescue you from foreclosure by paying off your mortgage note. The key is to learn how to distinguish the true investor from the person trying to rip you off. Read the sections on
These section will give you an idea these how scammers work.
It’s important that you do some research about any investor who approaches you offering to purchase your home. Some obvious sources of information: Real Estate Agents and a name search on the Internet.
Scammers are able to succeed primarily because homeowners' lack adequate knowledge about foreclosure. Without honest guidance regarding the process and their legal rights and alternatives, the homeowner can be taken in by the predator who promises to rescue them from foreclosure.
One common trick of any predator is to cut off a victim’s access to legitimate information. For example, with elder abuse the predator will keep the elderly victim away from lawyers and family members.
Scammers encourage you to stay away from people who can give you sensible advice.
Foreclosure scammers, by warning homeowners not to talk to their lender or an attorney cut them off from possible solutions and keep the scam alive.
The predator can approach the homeowner from many directions. The approach can be a straightforward phone call or a knock on the door. A brochure or flyer may be left at the front door or placed in the mailbox. Often a predator will advertise in the classified section of the newspaper. A Google search turned up numerous websites offering to assist home-owners. Often the predator will put signs up in neighborhoods stating “We Buy Houses.”
The New York State Banking Department has information on how to avoid foreclosure and related scams.
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