Homeowners Must Beware of Foreclosure Rescue and Short Sale Scams

foreclsoure and short sale scamsBy Omar J. Arcia, Esq.
Foreclosure Defense and Consumer Bankruptcy Attorney

 

South Florida homeowners and consumers in foreclosure or at risk of foreclosure are inundated with commercials, mailers, phone calls and even personal visits from companies claiming they can save their home. These companies are usually unlicensed and inexperienced, looking for a quick profit at the expense of the consumer. Here are some of the foreclosure rescue scams against which all homeowners must beware:

 

Out of state and local companies guarantee they can cancel the foreclosure process, and save your home. They make these promises in official looking documents that appear issued by the government or by the lender. At the bottom of the mailer is usually a tiny disclaimer that reveals the company is not tied to any federal agency or bank. Since these companies are non-attorneys, or attorneys NOT licensed to practice in the State of Florida, they CANNOT represent you in court, and YOU WILL LOSE YOUR HOME. They will also charge you an upfront fee to assist you with a loan modification, which is illegal under Florida law, punishable by civil and criminal penalties.

 

Many realtors have also jumped on the foreclosure rescue bandwagon, and are pushing short sales which are NOT in the best interests of many South Florida homeowners. I have witnessed realtors in court falsely posing as homeowners or as “attorneys” before a judge in order to obtain foreclosure sale cancelations. This is a dangerous game for both realtor and homeowner. We represent many clients whose realtors have even forged homeowners’ signatures on official court documents and filed last minute bankruptcy petitions to stop foreclosure sales without permission from the homeowner. This process is also illegal and is being aggressively investigated by the U.S. Department of Justice.

 

One final scam is the so-called “land trust” transfer. The way this unethical scam works is a company will partner with an unethical law firm or attorney to transfer your home’s title to a land trust; a new entity over which you have zero control. Then they usually file a court action by the land trust to remove the mortgage lien from the property. This process is not a legitimate means of saving your home, and it will fail. YOU WILL LOSE YOUR MONEY AND YOUR HOME if you fall for this scam.

 

If you have already fallen prey to any of these scams, demand your money back immediately and go to the appropriate authorities if they refuse to refund your money. There is only one way for homeowners to avoid these unethical and illegal scams — hire a reputable and knowledgeable law firm, like the Arcia Law Firm, with nearly 20 years experience, to represent your interests and obtain the best possible outcome, through aggressive foreclosure defense, loan modification, short sale or bankruptcy.

 

More detailed explanations of different options available to homeowners in foreclosure, at risk of foreclosure, or considering bankruptcy are discussed in the instructional DVD developed by the Arcia Law Firm entitled “Fight For Your Home.” If you mention that you heard about the DVD through this blog post you will receive a FREE copy during your visit to discuss your case in detail with Omar Arcia. You may contact the Arcia Law Firm at 954-437-9066 to schedule your free consultation. You may also visit www.arcialawfirm.com for more information about the Firm, our staff and credentials, detailed articles, informative videos, and to make your appointment online.

The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.