REAL ESTATE SCAMS IN PHOENIX, ARIZONA
We continue to experience a rough real estate market with unemployment at 10% and with another three million homes predicted to be foreclosed upon in 2010. Many people are scared of losing their home and they do not know who to call to receive professional assistance. I am sure you have read about many scams in your local area. We have many wolves in sheep's clothing out there ready to take advantage of people. It seems the biggest scam right now are the loan modification companies.
The state of Arizona has cracked down big time on loan modification companies because they were receiving many complaints of companies charging an upfront fee between $1500 to $5000 to modify mortgages. However, they had statements in the agreement that there were no guarantees and the money was nonrefundable. Well, many companies took the money and did nothing with the files. It is hard to believe there are people out there that would take someones money when they are behind in their mortgage payments. I would say a majority of their people want to save their home. However, they are not receiving professional assistance. All loan modification will need to be performed by a licensed loan officer. This new rule goes into order on July 1st, 2010.
Short sales continue to increase across America. They continue to represent a larger portion of listings here in Phoenix, Arizona. So, another scam is when people inform people that they will assist the home owner in the short sale process. However, this person quit claims himself on the deed. Then, puts the property in a trust. A contract is signed by a buyer and the trust for a lower price. They negotiate for the lower price with the bank. Meanwhile, the continue to market the property for a higher price. Boom, they receive another contract for $20K higher than the accepted short sale price at the bank. All parties perform a simultaneous close. Investor makes $20K off the entire transaction. The seller does not know until later on when he or she checks the County records online. The state of Arizona has cracked down on that practice. A simultaneous close must be disclosed to all parties in the transaction and disclose the money at the same time. Please seek a licensed Realtor to handle a short sale.
Please call the Real Estate and Beyond Team to review your current situation. We are here to assist with no upfront fees. Please visit www.960RealEstate.com.
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Also, sometime listing brokers will have to start addressing the incorrect listings that the aggregators are publishing because they just don't update. Breeding mistrust in the industry.
That is a great comment--thanks
We need to stop the madness
Borrowers should be wary if any loan modification companies or short sale companies are asking them for upfront fees. Im not sure about Arizona, but I know California and several other states have passed laws making it illegal for these groups to collect upfront fees at all.
Harry...In Colorado, there are fewer title companies willing do do a simultaneous close. From a lender perspective, you can legally enter into a contract to sell a property you do not own in the first place. I've walked away from a few of these without hesitation.
It is ok to do simultaneous close as long as everything is disclosed to ALL parties in the transaction.
I really enjoyed your post this morning. I am always learning on every post. Have a great day.