Warning signs of foresloure scams: transfer of title
January 19th, 2008 | Published in Florida Foreclosure Fraud, warning signs
Foreclosure scams take many forms. But there are several signs that, either together or by themselves, should serve as a warning to the homeowner that fraud may be in the works. In the next several posts, I’ll identify several of these warning signs and why they are indicators of fraud. First up: Transfer of Title.
The warning sign: transfer of title
A homeowner should be wary of any supposed foreclosure rescue deal that requires transfer of title in any form. This means signing a deed of any kind, transferring the home to a trust, executing an option that gives someone else the right to buy the home for a deep discount, or any other mechanism that gives someone else the right to take ownership of the house without any further recourse.
The reason for this should be obvious: control of the home is the ultimate goal of the scammer in most cases. Once the scammer gets that control, through legal ownership of the house, it is easy to borrow money against it, demand extortionate rent, or sell it outright to some third party. The transfer of ownership is both the means and the end of the scam. The scammer will do or say just about anything to get that transfer accomplished - any lie will do, so long as it works - and once he has control of the home, he won’t let it go easily.
The defense: don’t sign it.
It’s simple and completely effective. Don’t sign it. If you don’t understand it, don’t sign it. If you don’t have time to read it, don’t sign it. If it gives title of your home to someone other than you, don’t sign it. It may be tempting, even compelling, if you think you’re about to lose your home, but in almost every case, this type of scam digs you even deeper into the hole you’re already in. And don’t forget the First Rule of Holes: When you’re in one, stop digging.