Foreclosure Scams in Utah – Do These Scams Still Exist?

As you know, foreclosures back in 2007 were at record levels.  Just like with anything, when there’s an opportunity or when there’s people in default… the dishonest and unscrupulous people in the world tend to come out of the dark shadows to prey on home owners who don’t know any better.

Foreclosure scams in Salt Lake City and other parts of Utah still exist.

Over the years we have worked with hundreds of home owners, in fact we talk with home owners in foreclosure almost every single day.  Listen to what some of the experiences or stories we’ve heard of people in foreclosure being taken advantage of by scam artists proclaiming to be reputable “real estate investors”.

Not Every “We Buy Houses” Companies Are The Same

I am sure you have come across other companies or have seen signs that say “We Buy Houses Salt Lake City“… or websites like ours that mention the phrase.  Yes, we buy houses in Salt Lake City and I’ll walk you through how to spot potential scams vs. reputable property buyers in Utah.

As a quick review… there are companies and investors out there that buy houses from others who need to sell.  But, in some instances… that’s where the similarities from the scam companies and legitimate investors with great reputations like us stop.

In this article I’m going to explain some of the ways a small group of people try to take advantage of home owners like you.

I wrote this to be a “consumer awareness guide” to help you spot these fly by night investment companies so you can avoid and spot the “we buy houses” companies that you can trust (because the majority of home buyers are great people with great integrity… it’s those few bad apples that ruin it for everyone else.)

Here Are Some Guidelines And Warning Signs That Help You Spot A Scam When In Foreclosure In Utah

Are you in foreclosure?  Do you need a solution so you can avoid a foreclosure or get foreclosure help in Salt Lake City, here are some “warnings” some less than honest home buying companies may offer up.

Collect Upfront Fees To Get Mortgage Assistance From The Mortgage Company – As Fannie Mae says, help is free.  Beware of companies who charge you for talking with your lender about your mortgage to help you stay in the home or to find a solution. Don’t fall for this.  You can talk with your lender about your options or about the mortgage anytime with no fees or with no charge, or work with a someone or with a company who will call your lender on your behalf and not charge you anything.

Having You Sign Over The Deed To Your House To “Save” Your Home – This sounds backwards from the start. Some overnight companies may tell you that you can sign over the deed to your property (essentially giving up your home ownership) to save your house. As Fannie Mae says, never sign over the deed to your house unless you’re working with your mortgage company to forgive your debt… or unless you’re physically selling your house to a good reputable and honest company (check their status with the Better Business Bureau or BBB).  If you sign over the deed, ask the company to do everything at a reputable title company so everything is on the up and up (always consult legal advice before ever signing over your deed).

Don’t Give Up Ownership To Your Home – This is one of the ways scammers target property owners by telling them that they’ll pay off their mortgage.  Scammers will hide clauses in the their offer or paperwork that sometimes transfers ownership or gives up rights to the house and gives it to the scammers.  A trustworthy company will be upfront with everything, no hidden fees or clauses, and everything will be disclosed  before any legal documents are signed.  But remember as state up above, always consult your own expert to review any paperwork before you sign anything… even when working with a very reputable company… just so all of the “i”s are dotted and “t”s crossed.

Try To Say You Don’t Need A Title Company or Other Professionals In Selling Your Home – Selling your house, whether you’re in foreclosure or just need to sell quickly, should be done with the help of certain professional services.  With every house we buy, we always use a neutral 3rd party Title Company to handle the closing, drawing up the closing documents, and all related paperwork.  It lets you know with confidence that everything is legit with no funny business on either side of the transaction. If a house buyer says you’re going to do a “table closing” (actually signing all of the legal papers in your house) rather than with an attorney or title company… ask why.  Table closings can work, but using a title company or signing with an attorney helps protect both sides of the transaction and makes sure things are done legally.

The Mortgage Payment Scam – Some scammers have pulled a scam where they instruct the home owner to pay mortgage payments to them (rather than the bank directly) and the scammer will then “handle paying the bank”.  DO NOT DO THIS in anyway or form unless you get your mortgage company’s approval in writing. Some of these scammers will then pocket your mortgage payments and not pay the Lender… making your credit go bad and even worse then before.

(Source: Summary of information from the Fannie Mae info site)

Do Your Homework And Do Business With Someone You Can Trust

We buy houses in Salt Lake City and help people in foreclosure each and every week. So we know the market well and have seen lots of dishonest things happen to home owners who were duped by a scammer before they found us.

What we always say is to do your homework.  Ask any “we buy houses” company lots of questions before you do business with them to make sure that they’re real, that they’re honest, and that they can and will follow through with any offer they make you.  Some investors make lots of offers and back out on the ones they don’t have the money to close on. With, we only make offers on properties that we know we can close on if our offer is accepted… no if’s and’s or buts.

If you need assistance or are in foreclosure, or just want to know your options… visit your local foreclosure counseling service or browse this site and schedule a free Foreclosure Prevention session with one of our foreclosure experts.  Or, if you’re looking to sell your house fast, we’d love to chat with you… learn about your situation and your house… and make you a fair all-cash offer within a couple of hours of our phone conversation.  We can close at the day of your choice or as fast as 7 days.  The beauty of the whole thing is that we’ll make you an offer and there’s no obligation, no pressure, and no catches… you get the offer, you take as many days as you want to look over, have those you trust look over it, even shop the offer around to the other “we buy houses” companies if you want. We’ll be here for you and you can get started whenever the time is right for you.

If you’d like a fair no-obligation offer todayclick here and fill out the quick form.  After that we’ll give you a quick call, find out a bit more about the property, and make you an offer the same day.

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