Foreclosure Fraud

Fight Foreclosure fraud
The Utah Division of Real Estate is offering advice on how to avoid foreclosure scams in light of Utah's rising foreclosure rate.

The division has compiled the "Top Five Common Foreclosure Frauds" as well as "Five Ways Consumers Can Protect Themselves against Foreclosure Fraud" lists for the public.

Top Five Common Foreclosure Frauds
Consumers should be wary of any offers that include the following language:

*Save Your Credit: "Pay us a fee and sign your house over to us. The foreclosure will be recorded against us, not you." In this scheme, the lender will record the foreclosure against the homeowner who does not pay as promised under a mortgage.

*Lease-Back Repurchase Schemes: "We'll buy your property, lease it to you, and you have the option to buy it back!" Fraudsters prey on trusting individuals to get access to their home equity, title to property, credit, or money. Legitimate lease-back or lease-option agreements exist, but consumers must closely scrutinize the deal.

*Bank Relationships: "We have a special relationship with banks and can solve your problem quickly with no harm to your credit!" There are no easy solutions when you are facing foreclosure.

*Guaranteed Short Sale: "A short sale can save your credit, guaranteed!" Short sales can be a legal, effective method for preventing a foreclosure, but they are not guaranteed to be accepted by your lender, and they can affect your credit.

*Claim Bankruptcy: "Stop foreclosures with bankruptcy!" Financial advisers typically recommend bankruptcy only when all other avenues have failed so consumers should weigh all options before pursuing this path.

Five Ways Consumers Can Protect Themselves against Foreclosure Fraud
Below are tips to assist consumers who may be facing foreclosure:

1. Contact your lender as soon as you become delinquent. It costs lenders a significant amount of money to foreclose on a property, and many lenders have programs to help consumers.
2. Seek the advice of a competent professional, recommended by someone you know and trust. Real estate licensees, attorneys, and mortgage licensees can help you identify options for your situation. Make sure you are working with a licensed professional.
3. Do not transfer the title to your home to a third party. Individuals who are truly working in your best interest will want to help you keep your home or help you evaluate your best options.
4. Contact government agencies that can help you. Many agencies provide services for those facing foreclosure. The U.S. Department of Housing and Urban Development provides a list of HUD approved housing counseling agencies. They can be found at www.hud.gov.
5. Report any person or company who guarantees they will solve your problem. Your awareness may help government agencies prevent others from being harmed. You can report real estate fraudsters to the Utah Division of Real Estate at 801-530-6747 or by filing a complaint form: www.realestate.utah.gov.