As home foreclosures reach record highs and African Americans around the country are scrambling to save their homes and property; predators have come out of the darkness offering false hope and scamming homeowners into financial ruin. These pseudo-saviors oftentimes leave individuals in worse situations than they were in initially, and foreclosure scams are becoming more and more common. Scammers are using the Obama housing relief plan and offering to modify consumer loans — but you don’t need to go through a third party to learn about the program and find out if you’re eligible. Some are offering to buy your home and rent it back to you, which sometimes can work; but more often than not, your home’s equity is stripped and the scammer changes the terms of your lease and forces you out. Don’t trust anyone offering to renegotiate your loan for you — or who tells you not to contact your lender or lawyer; they usually charge thousands of dollars up front and disappear with your money.
Be wary of anyone who charges up-front fees, communicates via mail or e-mail or guarantees that they can stop your foreclosure. Up-front charges usually means that the counselor will disappear with your money, and they can’t possibly guarantee that they can save your home prior to reviewing your loan information and legal options. And never work with anyone who offers to complete the paperwork “for you” or warns you not to contact your lender. These are red flags that they are trying to dupe you into signing over your home or walking away with your money. “People do need some type of advocate to help them go through the process, but they need to make sure that person is experienced in dealing with loss litigation and home retention,” says licensed real estate broker Carl Agard of ANI Properties Inc.
Finally, don’t ever sign over ownership of your property. Legitimate foreclosure counselors wouldn’t ask you to sign a quitclaim deed or warranty deed — they transfer your ownership rights. And signing over property doesn’t solve your foreclosure problems. “If you transfer your house to somebody else, you’re still responsible for that mortgage,” explains Agard. “You can transfer your property but it doesn’t mean you’re out of foreclosure, you’re only transferring the title to your property.” –todd williams
Carl Agard is a licensed real estate broker in New York and Georgia, an author, and host of the Web radio show at www.realmoneyrealissuesradio.com
