Foreclosure is a very serious situation to be in. If you are nearing the cdpelogo_color_name_300dpi3possibility of foreclosure I am sure you are getting letters from many different sources telling you they want to help you. It can be very confusing so you need to be aware of the scams that have come to light. Following are two scenarios that have been given to take advantage of people who are about to lose their home.

Some organizations are advising people on the phone and by mailers to home owners, to just walk away and their home go to foreclosure. It appears the organizations behind this campaign may be groups of investors that want to buy your property cheap at auction. This can be devastating for home owners in many states, as the home owner is responsible for the deficiency, which means if you owe $225,000 on your loan, and your home sells for $100,000 at auction, you’re on the hook for the $125,000 difference. They can garnish wages to get it. This means the investor gets a great deal and the homeowner gets a huge bill as they are being kicked to the curb.

Private Investors/Lenders will tell you that they will bring your mortgage current and payoff all back fees to save your home, and they will, for a price. In order for them to do that you must “Quick Deed” (sign over your home to them in their name). In turn they will lease your home back to you with 15-20% higher payments for 1, 2 or 3 years until they have made their investment back. Then they will agree to sign your home back to you. Sounds good so far, right? But here’s the trick.

In the contract that you sign, somewhere in the fine print, it will say if the lessee (you) are 24 hours late with your monthly payment within the duration of your contract, then the lessee (you) must evacuate the premises. Usually within 5 – 7 days. Over 90% of homeowners that fall for this trick end up losing their homes. These investors all know that you’ve had payment problems in the past. That’s why they prey on homeowners in your situation. Next thing you know your family is out on the street with no home or hope and the investor just tricked you out of your $150,000 home that cost them only $4,000 to $5,000. So PLEASE BEWARE. Don’t do it. 

Owners in pre-foreclosure should seek out a Certified Distressed Property Expert as soon as possible.  These owners will need assistance in various form during the 10 month timeline that New Jersey currently follows from the Notice of Default (NOD) filing until the foreclosure sale.

To find out all the benefits and options for preventing foreclosure, contact Eddie Perez, Broker-REALTOR, CDPE or Anoir Redouane, REALTOR, CDPE.  Their market includes Hoboken, Jersey City, Weehawken and Union City.  They can be reached at or 201-344-2886. Or go to « ARE YOU AT RISK OF FORECLOSURE? .

Explore posts in the same categories: Distressed Properties

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