BEWARE of Mortgage Scams Coldwell Banker Northern California
Folsom Office

 
The California Association of Realtors would like to inform you that many scams have surfaced as a result of the current market. Here are red flags to watch out for:
 

·   Any business or person asking for upfront fees or money with the promise to provide any service to modify or negotiate your mortgage obligation.

·   Any person, real estate sales licensee or business who requests an upfront fee to be paid for services pertaining to a short sale outside of a negotiated commission structure. (These are termed “illegal junk fees” and they are becoming more common, even from some nationally known real estate brokerages.)

·   Any business or person who suggests a mortgage payment be made directly to them.

·   Any business or person who requires payment in the form of cash, cashier’s check or wire transfer.

·   Any business or person who promises to stop a foreclosure process … no matter what the circumstances.

·   Any business or person who advises you to transfer your property deed or title to them.

·   Offers to assist in completing paperwork or forms on your behalf.

·   Encourages you to lease your home and buy it back over time.

·   Asks for something to be done immediately and without delay.

·   Offers to buy your home for a fixed price that is not set by the housing market at the time of sale.

·   Any business or person who requests you to give a power of attorney.

·   Anyone asking for your signatures on documents that have lines left blank, or signatures on a grant deed or deed of trust.

·   Remember, if something seems too good to be true, it probably is!
 
If you, or someone you know, have been a victim of a foreclosure-related scam, you may report the incident to any of the following organizations:
 

·   California Attorney General, http://ag.ca.gov

·   California Department of Real Estate, www.dre.ca.gov

·   Department of Housing & Urban Development (HUD), www.hud.gov

·   Federal Trade Commission (FTC), www.ftc.gov

·   Your local Better Business Bureau, www.bbb.org
 
If you are at risk of foreclosure, have fallen behind on payments, or have already received a pre-foreclosure notice (Notice of Delinquency and/or Notice of Default), contact your lender immediately. Failing to act can create an even more difficult situation as lenders would prefer to consider or negotiate a settlement than pursue foreclosure proceedings. In some cases, a short sale may be in your best interest. However, when considering a short sale, be absolutely sure the real estate agent and broker fully explain your options and provide a detailed explanation of the process you are likely to encounter.
 
Homeowners also may seek the advice of a reputable housing, financial or credit counselor, attorney or other qualified professional. Visit the U.S. Dept. of Housing & Urban Development (HUD) web site at http://www.hud.gov to view the “Guide to Avoiding Foreclosure” with a list of California HUD-approved housing counseling agencies. In addition, the non-profit Homeownership Preservation Foundation has a 24/7 toll-free Homeowner’s HOPE Hotline at (999) 995-HOPE (4673).
 

As a licensed broker associate with Coldwell Banker, I am available to discuss options that may help avoid foreclosure and may be reached at 916-960-7300.