Don’t get ripped off by short sale scam artists

For struggling homeowners behind on their mortgages, the prospect of foreclosure can be a very real and very scary proposition. One potential way out of the mess is by a short sale, when the house is sold for less than the value of the mortgage and the bank agrees to write off the balance.

However, it is critical in such stressful times to make clear decisions and not get ripped off by scammers who would take advantage of vulnerable homeowners. Florida, at the epicenter of the mortgage crises, has gone after hundreds of shady businesses that have preyed on thousands of underwater homeowners.

Such was the case for Carlos Noguiera, who thought he was initiating a short sale on his house but instead found himself foreclosed on and his credit ruined. Noguiera, according to local news reports, signed over the power of attorney on his house to Sunnie Finkle and G.T. Wilson II on the promise that they would do the short sale. Instead, the pair allegedly rented out the house and pocketed the money until the bank came and foreclosed, according to a complaint in Pasco County.

Over a dozen homeowners fell for the same trick. Finkle would approach people and tell them she had a buyer ready, the complaint says, but instead turn the homes over to Wilson’s rental company.

The lesson from the story is an one for any homeowner looking to make a short sale.

Someone asking for power of attorney for a short sale should set off alarm bells — it’s not necessary! To avoid falling into that trap or any other type of foreclosure fraud, it’s important to consult with a reputable professional in the field.

Florida is considered ground zero for the mortgage crises and in turn, foreclosure fraud. Our state saw a massive buildup during the real estate boom and now untold numbers of homes are facing foreclosure after the owners were dinged by the recession, leaving a veritable playground for scammers who would take advantage of people at their most vulnerable.

 

Having the opportunity to speak with dozens of home owners a month who are in short sale situations, I can see how easily they would be persuaded to fall for someone riding in on a white horse to “save their home”. But…if that person is not a local real estate agent with lots of experience in successfully completing short sales OR an attorney specializing in helping distressed property owners…BEWARE.

Thanks for reading…and be careful out there!

You can reach me directly at 561.602.1258 or via email at info@ShortSales123.com

Steve Jackson