NEW FORECLOSURE SCAMS

Of course, out of tragedy come the scam artists. USA Today has an article today about a "fraud virus" hitting distressed homeowners. The FTC is quickly putting laws in place to stop these crooks. What happens is that scammers promise to save the owners home by promising to negotiate with the lender. The homeowner can live in the house paying rent but signs the title over to a rescue company that is supposed to pay the mortgage. Instead of doing so, the crooks take the up-front cash the seller pays them for this service and sells the house. Or they just disappear with the cash. The scammers hide a deed-transfer clause in the refinancing documents. Some states have forbidden foreclosure companies from charging up-front fees. Others require a separate distinct written agreement regarding the title transfer. Washington requires that if the house is sold that 82% of the proceeds goes to the original owner. We all are aware of the scum-seekers that are out there now and I, for one, am very cautious about keeping deals on the up and up. It's no time for games.