Foreclosures for the past 5 years have reached on record high levels. The foreclosures are the legal process where the lender in order to recover the balance of a loan from a borrower, forces the sale of their houses. However, we have seen unscrupulous and dishonest people come out of the closet with their aim of preying on poor troubled homeowners and take advantage of their difficult times. Thus, recently we have witnessed an increasing number of Foreclosure Scams.
We are reliable real estate investors who have spoken to many homeowners regarding the foreclosures and worked closely with them. You will be horrified to learn some of the stories we have heard from the people on how they have been scammed from reputable ‘real estate investors’.
However, not all “We Buy Houses” companies are scams.
You must have come across the website like ours and signs that read “We Buy Houses West Palm Beach”. It is true that there are many real estate investors that do buy houses like us, but the question is that are they reliable? To answer that you have to walk through a guide to spot the difference between the scam investors and the legitimate companies with a great reputation like us.
Let me acquaint you with some of the essential things to look at and how to spot reputable house buyers like us v/s potential scams in our area. We will explore how a small percentage of people are taking advantage of the homeowners in their desperate time and making money out of it.
This article is solely written as a consumer awareness guide to help you spot the scams and avoid them completely, over the ‘we buy houses’ companies that are not only reputable but are a group of home buyers who still have their sense of integrity intact.
Some Tips and Warning Signs That You May Be Stepping Into A Scam When In Foreclosure
If you’re in foreclosure and are looking for a solution to avoid foreclosure and get foreclosure help in West Palm Beach, here are some “solutions” some less than honest companies may offer up.
Charge Upfront Fees To Get Mortgage Assistance From Your Lender – As Fannie Mae says, help is free. Some companies will try to charge you for talking with your lender about your mortgage to find a solution. Don’t fall for this. You can talk with your lender about the mortgage and your options anytime with no charge, or work with a company who will do your loan counseling for you for free.
Signing Over The Deed To Your Home To “Save” Your House – This sounds backwards from the start. Some unsavory companies may tell you that you can sign over the deed to your house (essentially giving up ownership) to save your house. As Fannie Mae says, never sign over the deed to your house unless you’re working with your mortgage company to forgive your debt… or unless you’re physically selling your house to that company. If that’s the case, ask the company to do everything at a reputable title company so everything is on the up and up (always consult legal advice before ever signing over your deed).
Don’t Unknowingly Give Up Ownership To Your Home – Some ways scammers have targeted home owners is by telling home owners they’ll pay off their mortgage. With these scammers they hide clauses in the paperwork that sometimes gives up your ownership rights to the house and transfers them to the scammers. A reputable company will be fully transparent, no hidden clauses, and everything will be known before any documents are signed. But same as above, always consult your own expert to review any paperwork before you sign anything… even when working with a very reputable company… just so all of the “i”s are dotted and “t”s crossed.
Try To Say You Don’t Need A Title Company or Other Professionals In Selling Your Home – Selling your house, whether you’re in foreclosure or just need to sell quickly, should be done with the help of certain professional services. With every house we buy, we always use a neutral 3rd party Title Company to handle the closing, drawing up the closing documents, and all related paperwork. It instills confidence with the house seller and it makes sure there’s no funny business on either side of the transaction. If a house buyer says you’re going to do a “kitchen table closing” (actually signing all of the papers in your house) rather than a title company or attorneys office… ask why. Kitchen table closings can work, but using a title company or attorneys office helps protect both sides and makes sure things are done right.
The Mortgage Payment Scam – Some scammers have pulled a scam where they instruct the home owner to pay mortgage payments to them (rather than the bank directly) and the scammer will then “handle paying the bank”. In no circumstances should you do this unless you get your mortgage company’s approval in writing. Some of these scammers will then pocket your payments and not pay the mortgage company at all… harming your credit and causing you to be worse off then before.
(Source: Summary of information from the Fannie Mae info site)
Do Your Homework And Do Business With Someone You Can Trust
We buy houses in West Palm Beach and help people in foreclosure each and every week. So we know the market well and have seen lots of dishonest things happen to home owners who were duped by a scammer before they found us.
What we always say is to do your homework. Ask any “we buy houses” company lots of questions before you do business with them to make sure that they’re real, that they’re honest, and that they can and will follow through with any offer they make you. Some investors make lots of offers and back out on the ones they don’t have the money to close on. With Home Solutions FLA, we only make offers on properties that we know we can close on if our offer is accepted… no if’s and’s or buts.
If you’re in foreclosure and need assistance, or just want to know your options… visit your local foreclosure counseling service or browse this site and schedule a free Foreclosure Prevention session with one of our foreclosure experts. Or, if you’re looking to sell your house fast, we’d love to chat with you… learn about your situation and your house… and make you a fair all-cash offer within 24 hours of our talk. We can close in as little as 7 days. The beauty of the whole thing is that we’ll make you an offer and there’s no obligation, no pressure, and no catches… you get the offer, you take as long as you want to look over, pass the offer by those you trust, even shop the offer around to the other “we buy houses” companies if you want. We’ll be here for you and you can get started whenever is right for you.
If you’d like a fair no-obligation offer today… go here and fill out the short form. After that we’ll give you a quick call, find out a bit more about the property, and make you an offer the same day.