The Chief Economist for the Real Estate Center at Texas A&M University is warning struggling homeowners about foreclosure ‘rescue’ scams:
Here is how the scam works. The homebuyer gets behind on mortgage payments. The predatory lender offers a “loan to get caught up” on the delinquent mortgage payments. In exchange for the rescue, the homeowner signs over the title to the predator, who promises that the homebuyer may remain in the home while paying rent. The predator then sells the house to someone else, and the original homeowner gets an eviction notice.
Related posts:
- Foreclosure Scams on the Rise
- A Warning for Homeowners Facing Foreclosure
- Redux Predators in our Midst: A Warning for Homeowners Facing Foreclosure
- Predators in our Midst: A Warning for Homeowners Facing Foreclosure
- Short Sales & Foreclosure: Perception & Reality
Tags: Consumer Scams, Credit and Debt, Mortgages and Foreclosures
I recently read that in Boston we are having the highest foreclosure rate ever, with these scams being the primary cause. Sad, that people let loan sharks take advantage of them.