You are going to hear more from me about scams than you might care to hear. I'm just over it! I can't believe how people have been taken advantage of and I hope that I may be able to prevent you or someone you know from falling victim to such acts. Unfortunately many of these scams have come from untrustworthy mortgage brokers. Don't think I mean all mortgage brokers, there are a few of them that do a fine job but so many have jumped into the marketplace as they have little regulations. Most states are working toward correcting this. Encourage your state representatives to support these types of laws.
Realtor Magazine, January 2008, Gino Cischke writes:
A Scam in Five Acts
1. Bill, who has owned his home for nine years, loses his job and faces foreclosure.
2. Unscrupulous XYZ Finance says it will pay off the mortgage, cover closing costs, and give Bill $20,000 in cash, in return for a quit-claim deed.
3. XYZ also will let Bill stay in the house, paying rent at twice his former mortgage payment, with the promise he can buy the home back later.
4. Bill bites, figuring he'll use the $20,000 to cover his rent until he gets a job. He deeds over the house to XYZ for about half the home's value of $400,000, giving up his equity.
5. In a few months, Bill can't pay the new, higher rent, and XYZ evicts him.
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