Fraud Alerts/PSAs
April 8, 2016: Deceptive Tactics Used in Real Estate Bankruptcy Scam
Unscrupulous real estate professionals are taking valuable land over the telephone from unsuspecting homeowners facing foreclosure.
They persuade vulnerable homeowners to file for bankruptcy, then forge documents to place the property’s title in a third party’s name.
The bankruptcy stalls the foreclosure, as promised. But many victims don’t realize they have given up ownership of their property as part of the deal.
To stay in their home, victims are forced to pay rent to the crooks – money that usually is not being applied to the mortgage, leading to foreclosure and, possibly, eviction.
TIPS:
- Check with the California Bureau of Real Estate (http://www.dre.ca.gov/) for possible complaints against your real estate professional
- Never agree to sign a title over to someone without a full explanation
- Carefully read all real estate documents
Prosecutor David Lopez warns about the scam in this video: https://vimeo.com/161942328.
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