When my husband I decided to start a business, we didn't think about the legal aspects of doing so. We didn't realize that purchasing business insurance, getting building permits and making investments all required some type of legal advice. But after speaking to a close friend, who also happens to own a small business, we contacted a business attorney. Now, we have the legal smarts to make the best decisions for our business, as well as the legal representation in case something happens to our company. I hope that you find my blog helpful and informative for your own business. It's a great resource for finding the legal advice, resources and guidance you need to get your company up and running.
If your home is about to be foreclosed, you are likely to be worried and susceptible to foreclosures scam. Here are some of the scams you need to watch out for.
Equity Skimming and Stripping
In equity skimming, a fake buyer convinces you to buy your property, at a steep discount, and pay off your mortgage. For this to work, the buyer has to convince you to transfer your deed to them, effectively making them the new owner of the property. Unfortunately, the buyer will make no effort to pay the mortgage, instead of renting out the property to another person and pocketing the income. If you have a reasonable equity on the property, the buyer can even sell the property and keep the money. Of course, you will still be on the hook for the mortgage; you don't get out of your mortgage obligations just by signing over your deed to another person.
Another popular scam comes from those who pretend to be foreclosure counselors. In this case, someone will approach you with an offer to help you avoid foreclosure by counseling you and helping you with applications and processes needed to avoid foreclosure. Of course, they will take a "small fee" for these services. Unfortunately, all they will do is help you with processes you can try on your own or even assist you with things that can't and won't help you avoid foreclosure.
Rushed Loan Transaction
Whenever you are taking any loan, and not just home buying loans, you need to take your time, perform due diligence, and know exactly what you are getting into. That is the only way you will know the true cost of the loan plus the consequences or penalties in case you default. That is why you need to be suspicious when a lender offers you an attractive refinancing loan that you have to sign up for as soon as possible. In your rush to get the deal done, you may not understand all the terms and conditions of the offer. For example, you may not understand the high-interest rates, the need for a balloon payment and even the penalties associated with the loan.
Identity theft scams typically take place online or via phone. In this case, a fake lender offers you a loan and attractive terms and asks you to fax your financial documents. In fact, they may even approve your loan as fast as possible and ask you to pay some loan fees upfront. They can then mine the information on your financial and identification papers to steal your identity.
You should be particularly careful with unsolicited offers of foreclosure help. You can always run your concerns and suspicions by a real estate attorney first before making any move.