You thought of investing in real estate foreclosures? First, understand what this means. Actually, Foreclosure is to close out, control or limit borrower’s right of saving or retaining his mortgaged home. In simple terms, foreclosure is stopping the privileges given to the homeowner and rendering the estate an absolute property of the lending institution. The process of real estate foreclosures will start if you the homeowner apparently fails to remit payments due on the mortgage at the agreed time. In most cases if you are facing a foreclosure you are likely to be asked by a person wanting to help you out of your situation.
The big challenge is how to determine the genuine person to contract your foreclosure investment process. Real Estate Foreclosures scams are currently common and increasing. It’s very wise as homeowners to be aware about them.
Here is the common scam you a likely to land softly in one of the foreclosure investing business. The Equity skimming; One day you will be in a situation where there is no way or means to raise money to pay for your mortgage. It is a desperate situation as you will be placed between a rock and probably a metal surface in raising money. A ‘kind buyer’ will come along with a beautiful offer that you can not shoo off since it will look Heaven sent.
The person (Buyer) will offer to purchase your mortgaged home at a price you will quote. Think of it, any amount. The ‘kind buyer’ will offer to sort out your financial problems by paying off your outstanding mortgage loan. He will then promise to give you a sum of money after that property is sold, but before that, he will kindly request you to move out of the property immediately and hand over your property deed to him. The moment you move out, the heaven sent buyer takes over and rents out your property for the next several months and fails to make the payment as he had promised. You wouldn’t know this because you already moved out and no communication whatsoever will be made to you about any failed payment.
One thing you have to know is that, the lender will have no option that commencing a foreclosure. What you have to be aware of is that signing over your deed to the ‘kind buyer’ does not alleviate from your duty to pay off your mortgage loan. Your name will always stay on the loan until the loan is paid off. The best remedy for this scam is to strictly insisting on contracting a loan servicing company or trust company to collect and disburse the payments on your behalf. At least you will be assured of the payments being made.