Lindsay Hill, Southern California Real Estate Expert

With the recent rise in foreclosures, foreclosure-related scams have exploded onto the real estate scene. These so-called “foreclosure rescue companies” claim they will help save your home, but in reality are out to make a profit -- at your expense.

Red Flags for Foreclosure Rescue Scams

If you are at risk of or in foreclosure, you should be on the lookout for foreclosure scams. Here are some of the red flags to watch out for:

• Asks for money upfront before providing any service

• Asks for something to be done immediately and without delay. This includes pressuring you into signing paperwork that you have not had a chance to read thoroughly or do not fully understand

• Instructs you not to contact your lender, lawyer, housing counselor, family, friends, or others

• Asks for mortgage payments to be made directly to his or her company or a bank account set up by that person, rather than your lender

• Encourages you to lease your house and buy it back over time

• Requires payment only in the form of cash, cashier’s check, or wire transfer

• Offers to buy your house for a fixed price that is not set by the housing market at the time of sale

• Promises to stop the foreclosure process, no matter the circumstances

• Asks for you to give a power of attorney

• Asks for signatures on a grant deed or deed of trust

• Advises you to transfer your property deed or title to his or her company

• Asks for signatures on a document that has lines left blank

• Fails to provide copies of signed documents

• Offers to fill out paperwork for you

• Refuses or fails to put an oral promise in writing

Report Fraud

If you have been a victim of a foreclosure-related scam or approached by a scam artist, you may report the incident to the following organizations and government enforcement agencies:

• California Attorney General http://ag.ca.gov

• Federal Trade Commission (FTC) www.ftc.gov

• California Department of Real Estate www.dre.ca.gov

• Your local Better Business Bureau www.bbb.org

• Department of Housing and Urban Development (HUD) www.hud.gov