| As more HAMP loan modifications are getting declined, | | | | get a homeowner to sell their home at a discount and |
| homeowners are getting increasingly more desperate | | | | sell it back to them at way above market value |
| to keep their homes. For many homeowners, short | | | | without having to obtain an appraisal validating the |
| sales are becoming a great way for them to move | | | | purchase price. Having reviewed the homeowner's |
| forward with their financial recovery without the | | | | financial package, the company has fully underwritten |
| difficulties associated with foreclosure or bankruptcy. | | | | the loan package and is familiar with the ability to pay, |
| Unfortunately as this new component of the real | | | | thereby protecting their investment. If a borrower |
| estate market becomes more and more prevalent, | | | | defaults on the loan, the company just forecloses like |
| short sale frauds are popping up all over the internet, | | | | any other lender, sells the home at a relatively small |
| radio and television. These unethical short sale | | | | profit (Because they were able to purchase the home |
| companies are capitalizing on struggling homeowner's | | | | for significantly below market value), and writes off the |
| deep attachment to their homes to make huge profits | | | | massive loss against current or future profits. |
| with no regard for the financial well being of those they | | | | |
| are supposed to be helping. What these companies | | | | This is just one of several different foreclosure |
| are trying to accomplish is to purchase homes from | | | | assistance and short sale scams floating around the |
| desperate borrowers at deeply discounted prices and | | | | marketplace ready to trap the unwary and desperate |
| sell them back to the former homeowner at | | | | homeowner. With that in mind, it becomes even more |
| magnificent profit with a payment that is more | | | | important for struggling homeowners to seek the |
| affordable for them. | | | | ethical and honest representation of a licensed Realtor |
| | | | | (Preferably one educated and certified in dealing with |
| A homeowner, usually, contacts these groups thinking | | | | distressed borrowers) to make sure that the guidance |
| that they are going to be receiving short sale | | | | they are receiving is the right advice for their unique |
| counseling or foreclosure advice. They are then | | | | situation. Unlike these short sale scams, the papers that |
| informed about the advantages of a short sale vs. | | | | a Realtor presents to a homeowner contain specific |
| foreclosure, and given directions on how to move | | | | language establishing a fiduciary agency relationship. |
| forward with performing a short sale with the | | | | That means that the homeowner can trust that the |
| company's "assistance". The company representative | | | | advice they are receiving comes from an informed |
| then produces a set of documents for the | | | | and trusted source with a vested interest in the |
| beleaguered homeowner to sign with a list of financial | | | | homeowner's future financial well-being. Realtors are |
| documentation to submit to the borrower's lender to | | | | educated and trained in all facets of real estate and |
| get started negotiating the transaction. Unlike the | | | | can help determine if a short sale is the right solution |
| papers that a licensed and ethical Realtor would give a | | | | for a borrower's difficulties, and can make referrals to |
| homeowner, these contracts specifically state that the | | | | the right tax or legal professional if the situation |
| company is operating in their best interest and have no | | | | warrants. |
| duties of honest and forthright dealing with the | | | | |
| borrower. Furthermore, their goal is to purchase the | | | | Short sale scams are everywhere. Don't become a |
| home for well below market value, and not to get the | | | | statistic! These short sale assistance companies are |
| homeowner out of the financial difficulties with which | | | | nothing more than wolves in sheep's clothing trying to |
| they are currently struggling. After a negotiation | | | | take advantage of your financial difficulties for their |
| process that lasts far longer than the industry norms | | | | own financial gain. Make sure to thoroughly examine |
| (Primarily, because the property is not being acquired | | | | the track record and licenses of any companies |
| at fair market value!), the home is sold back to a | | | | offering to assist you with your mortgage troubles. |
| homeowner at a payment that they are more able to | | | | Even something so simple as performing a Google |
| afford. | | | | search for the company and adding the word "scam" |
| | | | | can give you startling insights into whether or not you |
| After their loan modification is declined, a homeowner | | | | should look for alternative resources. For most |
| is a prime candidate for this kind of fraudulent short | | | | Americans, their home represents the largest |
| sale company. Many borrowers focus more on the | | | | investment that they make in their lifetime. |
| monthly payment than they do the actual amount they | | | | Foreclosures, bankruptcy and short sales have serious |
| are committing to repay. Many families will do anything | | | | long-term impact on an individual's financial future. It is |
| to keep their home, and will modify their loan for an | | | | absolutely pertinent that homeowners seek competent |
| amount that may even be double the current value of | | | | representation to make sure that their situation doesn't |
| their home. This kind of desperation is exactly the kind | | | | go from bad to worse! Consulting with an honest and |
| of thing that these companies want to see. They can | | | | informed professional can make all the difference. |