Beware the Scam Artists

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It’s a sad commentary to hear the news reports that there are individuals and groups out there working scams to extract money from homeowners who are trying to do the right thing…..and who can least afford it.

Homeowners in financial distress are being targeted by scam artists purporting to assist homeowners with loan modifications, short sales and foreclosure “rescue”. 

If you or someone you know is having problems making their mortgage payments, please pass on this information

Here’s what you need to know:

You can negotiate a loan modification directly with your lender.  Your lender should be able to provide you with a list of the items needed to get you started. Loan modifications are for those in financial stress, therefore, you will be asked to provide a hardship letter, current income and banking information.

You can also hire a licensed real estate broker or agent who has experience with loan modifications and short sales or you can hire an attorney who does this kind of work in the regular scope of their business.

Red flags are almost to numerous to mention, but here are a few….money up front (legal with restrictions…but a red flag)….asking you to sign a power of attorney, suggesting that your credit can be repaired……guarantees of success…..the list goes on and on, so please do you or someone you know that is in financial distress a favor and check out this website,

http://www.yourhome.ca.gov/fraud_warning.pdf  before “hiring” someone to provide loan modification assistance.

Another source of helpful information is   http://www.yourhome.ca.gov/mortgage-help.shtml

If you feel the need to seek foreclosure assistance, be aware that, in the words of California Attorney General, Jerry Brown, “California is awash with con artists who prey on vulnerable families facing foreclosure," "By forcing foreclosure consultants to submit detailed information to my office and post a $100,000 bond, this newly created registry will help bring long-overdue transparency to this shadowy world."

Yes, that’s right.....as of July 1, 2009 Foreclosure Consultants must register with the Attorney Generals office and post a $100,000 bond.  Consultants that provide the required documents will be issued a Certificate of Registration  More details are here:

http://ag.ca.gov/newsalerts/release.php?id=1748

Keep in mind, there are qualified and licensed agents offering real help for those that are seeking assistance, so it can make sense to discuss your financial circumstances with a licensed real estate broker or agent that you trust. 

In our case, we work with two loan modification-short sale negotiators and neither charge an upfront fee. 

Whether it turns out that a short sale or a loan modification will result in the best outcome, keep in mind the lender is going to want current financial information and require an explanation of the hardship.

If you or someone you know needs assistance in the San Francisco Bay Area, give me a call at 650 325 7877 or email me at Russ@bayareateam.com

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They have served clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.