Foreclosure Rescue Scams

With the recent rise in foreclosures, foreclosure-related scams have exploded onto the real estate scene. These so-called "foreclosure rescue companies" claim they will help save your home, but in reality are out to make a profit at your expense. Don't fall victim to these underhanded people out to profit off your hardship. Make sure you look out for these things...

Red Flags for Foreclosure Rescue Scams

If you are at risk of or in foreclosure, you should be on the lookout for foreclosure scams. Here are some of the red flags to watch out for:

Asks for money upfront before providing any service
Instructs you not to contact your lender, lawyer, housing counselor, family, friends, or others
Asks for mortgage payments to be made directly to his or her company or a bank account set up by that person, rather than your lender.
Requires payment only in the form of cash, cashier's check, or wire transfer
Promises to stop the foreclosure process, no matter the circumstances
Advises you to transfer your property deed or title to his or her company
Offers to fill out paperwork for you
Asks for something to be done immediately and without delay. This includes pressuring you into signing paperwork that you have not had the chance to read thoroughly or do not fully understand
Encourages you to lease your house and buy it back over time
Offers to buy your house for a fixed price that is not set by the housing market at the time of sale
Asks for you to give a power of attorney
Asks for signatures on a grant deed or deed of trust
Asks for signatures on a document that has lines left blank
Fails to provide copies of signed documents
Refuses or fails to put an oral promise in writing

Report Fraud

If you have been a victim of a foreclosure-related scam or approached by a scam artist, you may report the incident to the following organizations and government enforcement agencies:

California Attorney General

http://ag.ca.gov

California Department of Real Estate

www.dre.ca.gov

Department of Housing and Urban Development (HUD)

www.hud.gov

Federal Trade Commission (FTC)

www.ftc.gov

Your local Better Business Bureau

www.bbb.org

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