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.”
Consider This
I can't believe that you are actually discouraging people who are in real distress to sell their house to investors! I am not implying that this is always the right solution, but there's no doubt in my mind that this is a real, and often times, the best solution. It's not rocket science - someone can't afford their house, so they sell it cheap in order to sell it fast. Please reconsider your 'scam' preaching. Not every investor is a scam artist. You need to broaden your own understanding if you really want to help people learn about all the available solutions.
Best regards, Jeremy
Homeowners should hope that an honest investor comes along
Jeremy you're right--a homeowner should, in fact, hope an investor comes along before their house is foreclosed.
However, sometimes its difficult to distinquish a genuine investor from a scammer. Obviously there are many people who invest in foreclosed properties who are doing a genuine service to both the homeowner and the lender by buying the distressed property. The problem, of course, is that scammers often appear to be honest, hardworking investors. Scammers create problems for investors (increased government scutiny and regulation) as well as for homeowners.
Homeowners need to do due diligence and check out an investor's reputation. Feel free to post other ways you think homeowners can distinquish a real investor from an imposter.
Realty Trac has an interesting article for investors. Investors. Want to Be Taken Seriously in the Foreclosures Market? Make a Realistic Offer!
Thanks for your comment.
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