The real estate predators are always there–in good times and in bad.
There are whispered stories in real estate circles of certain escrow and loan officers who, in the heady days of real estate, slipped deeds into the stacks of papers homeowners were signing as they refinanced their homes. The deed, of course, moved the property into the predator’s claws.
As the Discovery Channel shows, predators will always pick off the unsteady, the not-so-swift and the elderly because the catch is easy and the herd moves on. No different with these criminals.
But you know what’s scary?
The employers of these predators, when or if they discovered the crimes, fired the perps summarily–and kept their collective mouths shut. They didn’t want bad press, they didn’t want exposure, they didn’t want to field the possible litigation that sometimes come from predator attorneys.
It was a criminal catch and release program that spared corporations their reputations and the hassle of potential lawsuits.
As as result, it should surprise none of us that these same real estate criminals (and others who have caught onto their scams) are again preying on unsteady homeowners. This time they disguise themselves as the good guys of real estate, who are out to save stressed homeowners from foreclosure. Their lines and lead-ins go something like this:
I can save your home from foreclosure. I can save your credit. Just sign here.
Other wannabe-predators offer embarrassed and delinquent homeowners the chance to stay in their homes as renters, and then offer to buy them back when circumstances improve. Families can remain in their homes, the kids can stay in school, and neighbors will never know the difference.
The only problem is that the prices at which the homes will be eventually offered back to the former owners may be far above market value.
The true real estate predator will offer to make the foreclosure go away with a simple loan. All the distressed homeowner needs to do is sign on the marked lines (at the bottom of the promissory note and deed of trust)–which means that he and/or she have just signed over the deed to the house. These predators are really good at slipping these critical documents into big stacks of paper that need to be signed in any real estate transaction. If we recall, this is the same tactic these creeps used a few years ago and their targets remain the same: The distressed, the unsteady and the elderly–who also own homes with enough equity or opportunity to make it worth the hunt.
My advice to distressed homeowners? Immediately consult with a reputable real estate professional or attorney before signing anything offered by a real estate problem solver–and remember that the predators wouldn’t be after you if there wasn’t any meat on the target.
Good advice and all elderly thinking of doing a reversed line of credit. Have someone in the know take a look at what the banks are offering you. I seen elderly thinking the banks say on value is what their homes are worth and walked away from homes with 100,000 in equity still on the table but they were never offered a second valuation after the first loan was used up. Most banks will value a home way below the true market value. So do not take a free valuation by the bank as your homes true value. Call a agent. Most time a home owner is better to out right sell. Take there money and put it in the bank and if they don’t want to invest in another home find a nice apt to rent. They will have a lot less money stress and banks prey on the elderly wanting to stay in there homes as a leverage to charge you a lot of money and take a lot of equity. Most elderly do not have the kind of equity that last long enough to keep them in the home for life. They also will be paying a hefty price to be able to stay in a house. This is where the biggest preditors lay. They or there relatives will be first in line to walk away with super cheap deals on a elderly who thinks they used up all there profits in the house.
Family estate lawyer are another. Neer let a attorney refer you to a agent. Call three and find out value of the house your disposing of. Undervaluing estate homes is a common practice for quick easy quick sales for both lawyers and agents. Becareful
Betty Lou:
Thanks so much for sharing the warning–and a special place in hell should be reserved for those who prey on the elderly.
Additionally, what if the elderly victim needs to go to an assisted living facility or long term care?
I am thinking a follow up article is needed on this issue.
Want to see a stop-motion video about a couple of mice who must second-guess their real-estate-purchase descision? I made this video recently. Please check it out and comment. Thanks.
Blemish and Pittance: The New Place
When it is to good to be true, it usually is. There is no magic pill to fix the pickle you are in when your home is in foreclosure. Enlist the help of a professional, and not one who is recommended to you by the same people offering to “help you”. Take the time to ask the questions, research and make an educated and informed decision. Time is of the essence, but don’t give the slime balls the house.
Gators can be eaten also. In Louisiana they are hunted for the skin and the meat. Cajuns enjoy catching, skinning and eating.
This is a good way to take care of the predators. We however go after the biggest and the smartest gator. One great thing about the Cajuns is that they do not like to borrow money and hustle to pay off the loan. Its a culture learned from parents and grand parents.