Beware Foreclosure Scams Part 1

The past few years have showed us that owners of homes in foreclosure may face a variety of potential pitfalls.

So-called real estate investors

One such pitfall is a foreclosure scam. These often take the form of solicitations from so-called real estate investors who would like to purchase the homes before the foreclosure process finalizes.

The solicitations often occur by direct targeted mail, roadside signs, TV ads, and the Internet. They often appeal to distressed homeowners’ hopes of avoiding the blemish of “foreclosure” on their credit reports and may even falsely promise a deal that would keep the homeowner in possession of, or with legal title to, the house.

Usually these letters are scams and could actually bring you more sorrow than help. There are good, free resources available to distressed homeowners on the topic of foreclosure scams:

• The Federal Reserve Board
• The Federal Trade Commission

Avoid foreclosure frauds and scams with these tips

NC Office of the Attorney General tips

Office of Thrift Supervision tips

Office of the Comptroller of the Currency tips

If it sounds too good to be true, it probably is. Get the facts. If in doubt, contact a qualified legal advisor. Part 2 of this series talks about how these scams work.