Short Sale Scams

Be Aware of the Short Sale Scam

“Just sign here,” they say gleefully. The man in the fancy suit in front of you smiles from ear to ear, handing over a pen that will lock your life to a piece of paper. You feel nervous and unsure, but the man in front of you sticks the pen in your face and tells you this is the only way to save your home.

The Scam

“Sign on the dotted line, and we short sale your home,” with a $500 upfront fee of course.

Programs are created to help struggling homeowners take their first steps into short selling but for every new program is a scam and a con artist, waiting to take advantage of homeowners who are vulnerable. What can you do to save yourself from these scams?

Spotting the Scammer

If someone calls and tells you they can short sell your home with no problems, proceed with caution. Some may really be good people helping you out but others may be scammers prowling to get into your wallet.

If the deal sounds too good to be true, chances are that deal is not going to follow through like you want.

If you’re told to sign something on your first meeting but you’re not even sure what you’re signing, seek extra help from others before you decide. You may be about to give sensitive information to people you don’t even know.

An easy way to spot a scammer is in how they react:

  1. They force you to act immediately, usually on the spot
  2. They hand you a pen on the first day and before you can start asking, they’re already having you sign.
  3. They tell you that you don’t have to meet with an attorney for a consultation.

If you have a feeling you might be walking into a scam, contact the local FBI office or contact the Department of Real Estate. These two will be able to verify if it’s a scam or not. Remember, you are not obligated to pay anything upfront, either.

It is better to be safe than sorry!

Good help can come from great real estate agents (like us!), or attorneys who give free advice (like us!). Give us a call for a free consultation, and we’ll tell you if it’s a deal you should sign or not.

If you have any questions or concerns about your personal situation I would be happy to give you a FREE one-on-one legal consultation. You can call me at 916.442.6400 or send me an email at tgreene@tedgreenelaw.com or just visit my website www.upsidedownca.com.