Loan Modification Scams

DC Fawcett Reviews – Loan Modification Scams

Introduction

When a company or an individual asks for a fee to work with one’s lender to modify one’s loan and do nothing to save one’s home from foreclosure, it is called as a Loan Modification Scams.

DC Fawcett says that Loan modification is usually used to forestall foreclosure of homes. But scammers take advantage of loan modification.”There were about 35000 loan modification complaints  recorded by Neighbor Works America from the period of 2009 to 2013,” says DC Fawcett – a real estate investor and educator.

loan modification - Dc Fawcett scam

Many loan modification scams begin with a voluntary call to offer services for lowering mortgage payments or to completely escape from foreclosure. In case of mass re joinder law suites against unscrupulous money lenders, the caller usually asks for fees in advance. This fees is the indicator of a scam because while there are mass re joinder law suites, lawyers don’t take money until a legal decision is taken.

loan modification - Dc Fawcett scamSome scammers offer to review your foreclosure documents to check if the moneylender is complying with local and state laws. They usually demand fees for that. In worst cases, the deed or title to your home is usually surrendered unknowingly or with the hope that you can rent out the home in future or purchase it back. These occur in scenarios known as bait and switch ploys.

Seven suspects were charged of loan modification scams in 2014. They fleeced desperate homeowners who were trying to keep their homes during times of crisis. They told them that they had contacts with money lenders who would lower the monthly payments. Homeowners  were told that they would obtain a refund if they were dissatisfied with the terms. These suspects charged upfront fees for that .

Dc Fawcett Reviews – How to avoid loan modification scams

Any company that guarantees loan modification or foreclosure is a prospective scammer. Generally, attorneys and lawyers only promise to do their best to help. Modification of a loan depends on many factors such as financial position of both the borrower and the investor. Those who guarantee outcomes without considering the implication of these factors are cheats. So one should look out for them.

loan modification - Dc Fawcett scam

Any company or individual who asks one to sign blank documents is a scammer. Lawful companies and authentic lawyers will never ask one to sign something without reading and comprehending. This is done only by scammers who will add information later and DC Fawcett give many suggestions to maintain rental properties.

loan modification - Dc Fawcett scam

Some individuals may pose as a forensic loan auditor. They are also scammers.It will offer to review documents related to one’s loan. To tell one that this report can be used for loan modification purposes and the charge fees for that but will often not do anything in return.

loan modification - Dc Fawcett scam

Often phony seminars are scams. These seminars offer one free tickets initially. But when one goes there, one finds out that those free tickets were given to make one purchase tickets to additional seminars. The scammers make it sound as if these seminars are amazing but they usually have nothing great.

Dc Fawcett Tips – How To Keep Safe From Real Estate Scams And Fraud

One cannot afford to be gullible in case of a real estate transaction. The con artists are also former real estate professionals who make use of the real estate procedure.

How-To-Keep-Safe-From-Real-Estate-Scams-And-Fraud - Dc Fawcett scam

Here are some warning signalsgiven by dc fawcett for you to safeguard with regard to real estate scams. You can be judicious while you are dealing with purchasing, renting or selling any property.

  • You should never carry out the deal in a fast manner. It may be a very good deal and you want to grab it, but you have to ask questions. If you are a renter you should get inside the property rather than seeing the house just from outside.

  • Some former real estate agents may be so convincing that you won’t believe that they are con artists. They will have a page in business to business social media platforms like LinkedIn and it would give outdated info or wrong info that the victim believes to be correct. There are also unlicensed professionals who are still in the process of selling properties. So it’s wise that you ask for the license of the agent.

    loan modification - Dc Fawcett scam

  • Some sellers will consciously sell off properties that have issues. But they will give a picture as though the property is seamless. So it’s prudent to pose as many questions about the property including the reason for selling off the property etc.

  • Be sure of what you are involving yourself into. The key is to carry out the homework and get a professional and legitimate real estate agent to help you in the whole procedure. You can get property details through a title company. This helps you to cognize who is adhering to law in case of owning real estate.

  • You may have a feeling that there is something wrong but you would not have paid heed to your gut feeling. So the key is you should not ignore your gut feeling. There are some real estate agents who make the home buyers to give false details so that the loan application looks good. You may get the deal across but that implies that you also got involved in the fraud. So it’s good to say a big no to a transaction if you are not comfortable with it.

     Dc Fawcett scam - loan modification

  • One has to be extra careful in case of scams related to rentals. This is due to the reason that this is the only fraud where the attorney is not involved. In case of purchasing houses it’s a different case. Banks are extra careful that you don’t involve in a purchase deal where you are not the owner of the property.

When you have a partner these are the suggestions to stay away from real estate scams:

  • Partnering is good when you have dependable partners in lucrative markets.

  • You can put forth some prudent questions to your partner including the reason for the deal being good, how can you be safeguarded from the partner going away with your money etc.

  • If a person offers a deal ask your real estate attorney to analyze it carefully.

    Dc Fawcett Suggestions  – Be cautious of the foreclosure scams

    As bad luck would have it, there are a huge amount of fraudulent companies which claim to come to your aid when there are imminent foreclosures.  These companies wait to lay the bait for you and cheat you.  These companies call themselves as the consultants with regard to foreclosure and as the foreclosure specialists.  Before choosing any of these fraudulent outfits, check out the credentials and business credibility through sources as the US Department of Housing and Urban Development.

    One has to know how the foreclosure scam specialists get to know him.  They usually find it in the foreclosure listing in the local newspaper.  Very soon, call start pouring in trying to deceive you into a deal.

    foreclosure - Dc Fawcett scam

    There are various methods adapted by the fraudulent companies to cheat homeowners.  The tricks that they adapt are

    • Equity Skimming
    • Equity Stripping
    • Fishy Counseling Agencies
    • Lender Scams
    • Fishy Loan Transaction
    • Internet and Phone Scams

    Foreclosure is a very serious issue.  If sufficient care is not immediately taken, you may lose your home and your credit score is also damaged.  One has to have complete knowledge regarding the foreclosure and find out the exact mortgage assistance companies that pull you out of the difficulty.  When proper attention is not paid to the difficulty, fraudulent foreclosure companies will start laying the bait.  Next to your family, your home is the valuable property that you retain.  One should not allow fishy companies to take him for a ride.

    foreclosure - Dc Fawcett scam

Dc Fawcett – Some tips on real estate scams

With the boom in the real estate industry, real estate investments have been shooting up rapidly. With an increase in the real estate investments, scams too are occurring frequently. In this article, DC Fawcett gives guidelines on the various types of scams, how consumers can protect themselves from scams and the indicators of scams.

foreclosure - Dc Fawcett scam

DC Fawcett Real Estate  – Types of scams

Property rented by people with no leasing rights

Those who don’t have leasing rights on their properties rent them to potential tenants. They then disappear with the first month’s rent, security deposit and sometimes even the prepaid rent.

 Dc Fawcett scam - real-estate-scams

Charging future tenants with money for background verification

Prospective tenants are asked to pay money for background checks. When hundreds and thousands of tenants pay this, a lot of deposit is accumulated by the scammer.

Copying legal advertisements and posting it with their own details

Scammers often copy legitimate advertisements and post it with their own contact information. They then make some excuses for not being able to show the property. The tenants are then convinced to pay without seeing the property beforehand. Once the scammer gets the money, he vanishes

Fake cheques

Scammers contact the property owners who have advertised their homes on the internet. They then transact rental prices and send cheques to the owners. The cheques are written in excess of the actual rental amount. The scammers demand a refund of the excess amount, saying that they will back out if they do not get the refund. So the owners pay the refund. But, the owners find out that the cheques are counterfeit when they deposit it in the bank.

The crime doer actually shows the buildings to the potential tenants.

In these scams, the scammers are actually show the buildings to the tenants. Tenants then move in only to be told by the bank that the property does not belong to the scammer.

Dc Fawcett Tips – Ways to avoid scams

People should be cautious of scams:

Potential tenants should verify the renter’s personal details like income, track record and others and follow up closely with the individual

People should never wire funds to strangers

People should check the security deposit amount in their state before paying.

People should check with the county recorder to know who owns the property that they are going to rent

They should check the authenticity of the property owner by calling the property manager.

People should ask the owner for an application. If they fail to produce one, it is a scam.

They should not receive checks with over payment.

There are plenty of scams occurring in the realestate industry. For example: This complaint was received by the programming manager of a non-profit firm which had campaigned for loan modification. A fake company posing as a government-affiliated housing agency had cheated the unsuspecting homeowner out of $10,000 promising loan modification. After giving cash for phony “processing fees”, the victim was left five figures poorer with no mortgage relief in sight. So people should be careful about scams. The tips given by DC Fawcett will be of great help.

Dc Fawcett – Steering Clear Of The Foreclosure Scams

After a day of arduous work what people expect is the comfort of their homes and being with their families.  Many years would pass by before you raise your dream home and stuff it with pleasant memories.  But, a few missed payments of the mortgage would snatch the home away. The very idea of foreclosure is a bad nightmare for many.  In this article, let us go through options that could be adapted to avoid foreclosure. Also let us skim through methods to evade the foreclosure scam.

Dc Fawcett Real EstateThe Nightmare of Foreclosure

There is the lingering fear of foreclosure that many homeowners suffer from.  In some cases, unexpected financial crunch, loss of job, exorbitant medical expenditure, divorce or a person dying in the family can influence homeowner’s affordability to furnish his or her payments of the mortgage. A foreclosure happens when one lags behind in payment of the mortgage, thus making the lender retain your property.

In some cases the property is less valuable than the actual amount you have to pay to the lender.  This leads to a complication of things, and it enables the lender to take up a deficiency judgment.  The deficiency judgment depicts the difference between actual price of the property and the amount that you have to pay to the owner.  If such a thing happens, one will not be able to retain his property. Also, he or she will need to pay an extra amount.

In the worst scenario, deficiency judgments and foreclosures will influence the credit score very badly.  The foreclosure will remain in the credit report for more than seven to ten years.  This will reveal to the future lenders that you might not be a suitable borrower.  Things will get difficult for one to retain a mortgage of avail of a loan in the near future.

Be cautious of the foreclosure scams

As bad luck would have it, there are a huge amount of fraudulent companies which claim to come to your aid when there are imminent foreclosures.  These companies wait to lay the bait for you and cheat you.  These companies call themselves as the consultants with regard to foreclosure and as the foreclosure specialists.  Before choosing any of these fraudulent outfits, check out the credentials and business credibility through sources as the US Department of Housing and Urban Development.

One has to know how the foreclosure scam specialists get to know him.  They usually find it in the foreclosure listing in the local newspaper.  Very soon, call start pouring in trying to deceive you into a deal.

There are various methods adapted by the fraudulent companies to cheat homeowners.  The tricks that they adapt are

  • Equity Skimming
  • Equity Stripping
  • Fishy Counseling Agencies
  • Lender Scams
  • Fishy Loan Transaction
  • Internet and Phone Scams

Foreclosure is a very serious issue.  If sufficient care is not immediately taken, you may lose your home and your credit score is also damaged.  One has to have complete knowledge regarding the foreclosure and find out the exact mortgage assistance companies that pull you out of the difficulty.  When proper attention is not paid to the difficulty, fraudulent foreclosure companies will start laying the bait.  Next to your family, your home is the valuable property that you retain.  One should not allow fishy companies to take him for a ride.

DC Fawcett Reviews – 3 Most Common Short Sale Scams

A short sale is a sale in which the proceeds obtained from the sale is less than the balance owed on the mortgage covering the sale. DC Fawcett reviews the 3 most common short sale scams.

 Dc Fawcett scam - real estate scam

Unrevealed payments

This is a short sale scam committed by junior lenders, sellers, real estate agents  and short sale negotiators. Primary lenders approve the short sales but they place a limit on the amounts received by the junior lenders. This leaves them dissatisfied and unhappy. In turn, they ask the sellers to pay them amounts off the settlement clause. Sellers end up paying these undisclosed payments. When they do this, they are subject to short sale frauds. How do they know if the money lenders would have approved of the short sales if they had known about the undisclosed payment?

Short-sales - Dc Fawcett real estate

 Short sale flopping

In flopping scams, the tricksters are the buyers of the properties. They show the properties as worth very less to the lenders. Offers to buy at higher rates are hidden from the lenders, as they would approve those prices instead. So, the lenders approve the short sales at lower prices instead. Then tricksters contact other bona-   -fide buyers and arrange the properties to be sold at high prices. They ensure that the transactions close at the same time as the short sales and keep the differential  amounts with them. Short sale flopping affect the sellers because they are held responsible for the shortages in the amounts. Even if they are forgiven for the shortages, they cannot escape taxes on the insufficient amounts.

 Dc Fawcett scam - real estate

Exploitative short sale negotiators

Some fraudsters call themselves as short sale negotiators and take advantage of the highly motivated sellers and buyers. They collect upfront fees from sellers and offer to provide services for short sales. They do nothing in return. When sellers hire short sale negotiators, they should contact the agency of the state to check if negotiators should be licensed. If they should be, then they have to verify whether they are. So, sellers should read documents carefully or they can take the help of an attorney or housing agency to do so. Authentic and successful real estate agents can help.

Danger signals for short sale scams – Dc Fawcett Reviews

Danger signals as analyzed by DC Fawcett are :

  • Off the settlement statement payments
  • The buyer is phony or purchasing under the power of an attorney
  • The purchasing agreement contains a clause stating that the buyer can resell
  • Upfront fees
  • Fees required to be paid outside the escrow
  • Short sale negotiator is not licensed

Before coming to short sale scams, people have to decide whether a short sale is really good for them. DC Fawcett says Short sales are often done to increase the credit score. But, this is not a guaranteed result. Also when sellers short sell, they are liable to taxes on the deficient amount. Short sales do not necessarily cancel the remaining debt on the mortgage. There are other alternatives to short sales like loan modification, modification of foreclosure deeds and others. But if somebody is doing a short sale, he has to do it carefully.

 Dc Fawcett scam real estate scam

Dc Fawcett – Wholesaling Mistakes Made By Realtors

DC Fawcett Real estate wholesaling

People are interested in real estate investment because of the simple reason that it is a rewarding career. However, the hurdle which most of them face is, they don’t have immediate cash. They believe there is no better kick-start in their career other than wholesaling and enter in flip and fix game of becoming a landlord which is the better way to start. However, there are many pitfalls that realtors have to face. DC Fawcett discusses the common blunders made they make on this topic.

 Dc Fawcett scam real estate scam

Dc Fawcett Scam – Wholesaling Mistakes Made By Realtors

If you think wholesaling is one of the best ways to make money, there is no doubt about it. You are on the right track. However, you need to understand the pros and cons so you avoid the mistakes as a beginner or otherwise. One small mistake in this field can prove to be very costly, which needs to be avoided. We will be discussing the wholesaling mistakes below.

Wholesaling Mistakes Made By Realtors - Dc Fawcett real estate

  1. Overpaying – This is one of the common mistakes the realtors make. This basically because of ignorance or insufficient knowledge about this trade. The wholesalers need to gather a lot of information and do plenty of market research so they won’t end up overpaying.

  1. No marketing – Marketing plays a very important role in any business especially the real estate. You need to keep marketing the property using the marketing strategies. However, this is another mistake which many make when they don’t take the trouble to market the property. One cannot expect to sell the property unless the buyers are aware of it.

     Dc Fawcett scam - real estate scam

  1. Wasting time – Many wholesalers spend more time on Search Engine optimization, social media short sales, and Daisy chain emails. Instead of this, you as a wholesaler need to target the pavement and get the buyer and seller leads.

  1. No emergency cash – Though, you need not carry any money initially does not mean you should not have cash in case of emergency. As a wholesaler, you will sell the contract to the investor who approaches you to inquire about the property before taking a decision to buy it. If you are unable to find the buyer, you would still be paying for the property.

  1. Ignoring the buyer’s needs – This is the main thing which the wholesalers ignore in the pretext of making a sale to earn a profit, not realizing that it will affect their business in the long run. If the buyer feels they don’t get much benefit in buying the property, they will negotiate a lower price. If they negotiate a very low price, it will eat up your profit. To avoid this, you need to put yourself in their boots.

  1. Not crunching the numbers – Before signing any deal, you need to analyze whether it is worth buying. For this, you need to get After Repair Value (ARV) from the real estate agent and calculate 70% of the ARV and deduct t from the wholesaler’s fee. The number should match with your Maximum Allowance Offer (MAO)

Conclusion

One must always be cautious of scams as they result in heavy losses. DC Fawcett is well-equipped in Virtual Real Estate Investing. He is adept at rehabbing, wholesaling etc. in virtual markets where he does not reside. He also provides free Virtual Real Estate advice that is written on his blogs.These tips above, by DC Fawcett will surely help in identifying and avoiding scams.

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