The HUD website actually has some good advice about handling foreclosure.
If you are facing foreclosure, it is a stressful time.
Con men and hustlers know how to prey on people in that situation, how to gain the confidence of people in crisis.
Frequently, they say they want to help you, because their mother, or sister, had the same thing happen to them. They act is if they are running a charity. They uniformly advise you to stay away from lawyers, don’t waste your money on them.
Bad advice.
The HUD website refers you to housing counselors, who give free consultions. So do many attorneys, including me.
Once your confidence is gained, (that is where the “con” in con man is from) they ask for money.
Not a good idea.
They say they work out deals with mortgage companies all the time, even days ahead of a foreclosure sale.
You find out at the last minute, that you did not qualify, or the deal fell through, the investor changed his mind, whatever. You have missed your chance to file Chapter 13 bankruptcy to stop the sale, and are out whatever you paid the hustler.
Or, for you to sign over your home, just temporarily, until you re-establish your credit by renting it from a straw man, not the con man.
Worse idea.
One scam involves the straw man getting a new mortgage, for more than the home is worth, paying off your mortgage, then kicking you out when you default on the land contract, or lease, or whatever they have you sign to get the property back.
In Michigan, I have seen a deed from the owner to the straw man, a new mortgage to provide payment of the redemption price to rescue the home from a foreclosure sale, and a land contract, all recorded on the same day.
Of course, there was enough money left from the new mortgage to pay the straw man $5,000, and a hefty instant profit for the con man, who then forfeited the land contract when the homeowner defaulted.
The financial difficulties that caused him to miss the mortgage payments did not change, so he could not make the land contract payment, either.
Just like the predatory lenders, the con men say they are providing a public service. Who else would lend to people about to lose their homes?
Maybe no one, but a homeowner with full knowledge could sell his house and keep the equity, instead of losing it to a hustler.
If it sounds to good to be true, it is.
No related posts.
You must log in to post a comment.