There are many companies which appear to offer foreclosure relief that will require consumers to sign contracts which involve turning ownership of a home over to the foreclosure company and leasing the home back to the consumer with a buy back option at some future date. Many companies prey on consumers fears of losing their homes. Many of these scams are designed to fail .
An example of one scam known to be operating in Nevada: The perpetrator solicits victims directly through the mail with promises to help a homeowner from foreclosure by saving their credit and negotiating directly with their lender. The perpetrator will offer to buy the house for the total amount owing on the house, plus some small amount of cash.
The scamers will require the homeowner to sign a deed, a transfer tax form, and a contract of sale. The deed provides that the seller (the victim) is selling the house to a corporation. The perpetrator pays the cash to the victim and assures him he will take care of paying off any mortgages on the home. After the seller moves out of the house, the perpetrator rents the house, does not pay the mortgages, and the house goes into foreclosure. The scamer can continue to collect rent until the foreclosure process is completed. The homeowner collects none of the rent, and, once foreclosure is completed, the renters are evicted.
Assistance is available from licensed debt credit counselors, government agencies, and legal services. Seek advice from qualified professionals who do not have a personal interest in your decision.
Consumers may contact the Attorney General's Bureau of Consumer Protection about home foreclosure "rescue" scams at (775) 684-1180. A complaint form, as
well as other valuable information on consumer protection, is also available on the Attorney General*s website at http://www.ag.state.nv.us.