There are some legitimate real estate investors who specialize in purchasing homes in distress and helping owners prevent foreclosure. However, there are others who prey on homeowners in distress. Here are some examples of unscrupulous tactics to avoid:
Signing The Deed Over To An Investor
This is a particularly troubling practice that investors engage in typcally referred to as taking over a property 'subject-to' existing financing. There are very few situations when a homeowner's best option is to sign over a deed, however this is not the case with most short sales. When you sign over the deed of your home, you no longer have any legal rights to the property, however, the mortgage is still in your name.
Signing A Power Of Attorney
This is essentially the same as signing over the deed. By giving someone power of attorney, you give them legal rights to sign any documents on your behalf. The power of attorney gives the legal authority to make decisions and sign documents without your further consent.
Creating Issues With A Property
Intentially damaging a property in any way in an attempt to collect compensation in the form of insurance, or to get the bank to go along with a short sale is fraud.
Getting Cash Back At Closing
The lending guidelines have become more strict given the current economy, and the rising number of foreclosures. In any real estate transaction, it needs to be made clear that a homeowner or purchaser getting cash back of any kind that is not disclosed on the HUD-1 Closing Statement is fraud.
Avoid Foreclosure - Short Sale Help
What a Short Sale is Not
What is a Distressed Property?
Other Options
Short Sale Myths
CDPE Special Online Reports
Top 10 Reasons To Avoid Foreclosure
Start Your Short Sale
What is a CDPE?
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RE/MAX Alliance is not engaged in the practice of law nor gives legal or tax advice. It is strongly recommended that you seek appropriate professional counsel and tax advice regarding your rights as a homeowner.
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