Foreclosure Scams and Short Sales in Richmond Va

You may hear of foreclosure rescue or short sale assistance on the web or from solicitation calls around the Richmond VA area.  Homeowners should be vary wary as many scammers prey on distressed homeowners. A seller or purchaser of  a home in which a short sale is being negotiated should seek representation by a licensed real estate agent to properly navigate this process. Here are some additional articles on short sales in Richmond.

Buyers may also be contacted by so-called “investors” who help perpetuate fraud. Don’t become a victim or an unknowing party to these schemes - See the FBI’s 2010 Mortgage Fraud Report for Warnings:

http://www.fbi.gov/stats-services/publications/mortgage-fraud-2010

Some highlights of the report are:

Foreclosure Rescue Schemes

“Foreclosure rescue schemes are often used in association with advance fee/loan modification program schemes. The perpetrators convince homeowners that they can save their homes from foreclosure through deed transfers and the payment of up-front fees. This “foreclosure rescue” often involves a manipulated deed process that results in the preparation of forged deeds. In extreme instances, perpetrators may sell the home or secure a second loan without the homeowners’ knowledge, stripping the property’s equity for personal enrichment. For example, the perpetrator transfers the property to his name via quit claim deed and promises to make mortgage payments while allowing the former home owner to remain in the home paying rent.  The perpetrator profits from the scheme by re-mortgaging the property or pocketing fees paid by desperate homeowners. Often, the original mortgage is not paid off by the perpetrator and foreclosure is only delayed.”

Real Estate Investment Schemes

“In a real estate investment scheme, mortgage fraud perpetrators persuade investors or borrowers to purchase investment properties generally at fraudulently inflated values. Borrowers are persuaded to purchase rental properties or land under the guise of quick appreciation. Victim borrowers pay artificially inflated prices for these investment properties and, as a result, experience a personal financial loss when the true value is later discovered. Analysis of FBI cases opened in FY 2010 revealed that 43 percent of FBI field offices are reporting this activity with losses exceeding $76 million.”

If you have specifics questions about short sales, foreclosure or real estate investments in the Richmond, Virginia area feel free to contact me with questions. I am a Certified Distressed Property Expert. Email at Tara@SnipesProperties.com