This is a real estate scheme that purports distressed homeowners into their property under a rent-to-buy plan. The scammers will ask the homeowner to sign over the deed of the home to a company or individual who has a good credit standing so that the homeowner could secure a new loan and eventually save the home from foreclosure. The homeowner is then offered to stay in the house and rent it out, further guaranteeing that the homeowner could buy it back after a year when finances are stabilized.
The short sale scammers don’t actually intend to let the homeowners stay.
Plans have already been designed to evict the homeowner through the following:
1. The new borrower will not pay the mortgage so that the short sale homeowner is forced to leave.
2. Create a tight contract on rent payment terms so that when the homeowner violates, the short sale scammer files for eviction.
3. Keep increasing the rent so that the homeowner couldn’t keep up.
Another version of this scheme is when the perpetrator would ask the homeowner to sign over the deed of the property and move out within a promise that they will look for a buyer and sell the home. The scammer then promises the homeowner to give a part of the profit once the house is sold. But when the homeowner moves out, the scammer will only rent it out to someone else and then disappear with the money. What makes this scheme unforgivable is that the homeowner loses the home but is still obligated to make mortgage payments.
Scam Alert: Never sign your deed over to anyone offering these types of resolution for foreclosure. If you happen to encounter unsolicited recommendations and offers, please refer to your realtor immediately or contact the Federal Trade Commission at 1-877-ftc-help or visit their website at www.ftc.gov
Rescue Loan Deception
This is another type of scam wherein you are asked to sign documents for a new loan or make your existing debt current. It appears like you are refinancing your home, when in fact, you have signed a forged document that surrenders your home title to a scammer in return for a rescue Loan.
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Please seek legal advice. This information is for informational purposes only.