Be Wary of Foreclosure Rescue Scams
While speaking at a seminar a few weeks ago, a real estate agent, who happens to be heavily involved in the foreclosure market, approached me during the break and we began to discuss the current housing crisis in the State of Michigan. She stated that based on the number of homes in default that were yet to enter the foreclosure market, the current housing conditions were only going to get worse due to the large amount of inventory. I know many real estate experts feel that Michigan has not seen the bottom of the foreclosure tumult. With this thought in mind, it is imperative that home owners and buyers be on the lookout for mortgage fraud.
The FBI reports that mortgage fraud remains a very real problem as new scams involving “foreclosure rescue” are being offered on a daily basis. While not all foreclosure rescue programs are scams, you can avoid becoming a victim by following the five tips below:
1. Be wary of unsolicited contacts and pressure sales techniques.
2. Be wary of what you are signing.
3. Check the licenses of the people involved, making sure they are qualified.
4. If it sounds too good to be true, it probably is.
5. See a real estate lawyer before you sign anything.