If a person is selling a home without professional help, they should be wary of buyers who try to hurry through the process. Unfortunately, there are plenty of people who will take advantage of someone else’s financial difficulties. The law office of Raoul J. LeClerc will help homeowners look for the following tactics.
Skimming Equity
In this scam, a buyer approaches a seller and offers to get them out of a sticky financial situation by promising to pay the mortgage or give the seller money when the home is sold. The buyer may try to get the seller to quickly “deed out” the property, but then the seller will neglect to pay the mortgage and a foreclosure will result. Signing over the deed to a home doesn’t always absolve a homeowner of their loan obligations.
Balloon Payments
If a buyer has fallen sufficiently behind on mortgage payments, they may be forced into foreclosure. A common scam is where a lender offers to refinance the mortgage while lowering monthly payments. However, homeowners should review the loan terms carefully because the lender may offer a loan where only the interest is paid each month. At the loan’s end, the principal becomes due in a lump sum known as a balloon payment. If the payment can’t be made, the homeowner may still lose their home.
Fake Counseling Agents
Some groups are referring to themselves as “counselors” who may approach homeowners and offer services for an additional charge. These services are often doable for free, such as negotiating with lenders or selling before foreclosure. Below are some tips on protecting oneself from a foreclosure or mortgage scam.
* Don’t sign papers before reading, and be sure to get promises in writing. Steer clear of contracts of loan assumption where the homeowner is still liable for mortgage debt.
* Ask a real estate lawyer in Paradise, CA before signing a contract involving a primary dwelling.
* Real Estate Lawyer in Paradise CA
* If a homeowner is selling before foreclosure, they should check the potential buyer’s record for complaints. The homeowner can call the state attorney general, the Real Estate Commission, or the Consumer Fraud Unit of the local DA’s office.
Homeowners should be wary of scams pertaining to foreclosures and mortgage troubles because solutions that sound effortless are usually too good to be true. By following the tips above and by hiring a real estate lawyer in Paradise, CA, a homeowner in financial trouble can come out as cleanly as possible.
