Foreclosure Scams in Salt Lake City– Beware Of Scams Like These

chofhine • Apr 26, 2013
Foreclosure Scams in Salt Lake City– Beware Of Scams Like These

As you now, foreclosures over the past 5 years have been at record levels.  Just like with anything, when there’s an opportunity or when there’s people in pain… 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 have even picked up in recent years.

We’ve been working with home owners for some time now, in fact we talk with home owners in foreclosure every single week.  You should hear some of the stories we’ve heard of people in foreclosure being taken advantage of by scam artists proclaiming to be reputable “real estate investors”.

Not All “We Buy Houses” Companies Are Created Equal

You’ve seen those 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 house buyers in our area.

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

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

This is meant to be a “consumer awareness” guide to help you spot the companies to avoid and pinpoint 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.)

Some Tips and Warning Signs That You May Be Stepping Into A Scam When In Foreclosure

If you’re in foreclosure and are looking for a solution to avoid foreclosure and get foreclosure help in Salt Lake City , here are some “solutions” some less than honest companies may offer up.

Charge Upfront Fees To Get Mortgage Assistance From Your Lender – As Fannie Mae says , help is free.  Some companies will try to charge you for talking with your lender about your mortgage to find a solution. Don’t fall for this.  You can talk with your lender about the mortgage and your options anytime with no charge, or work with a company who will do your loan counseling for you for free.

Signing Over The Deed To Your Home To “Save” Your House – This sounds backwards from the start. Some unsavory companies may tell you that you can sign over the deed to your house (essentially giving up 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 that company.  If that’s the case, 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 Unknowingly Give Up Ownership To Your Home – Some ways scammers have targeted home owners is by telling home owners they’ll pay off their mortgage.  With these scammers they hide clauses in the paperwork that sometimes gives up your ownership rights to the house and transfers them to the scammers.  A reputable company will be fully transparent, no hidden clauses, and everything will be known before any documents are signed.  But same as 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 instills confidence with the house seller and it makes sure there’s no funny business on either side of the transaction. If a house buyer says you’re going to do a “kitchen table closing” (actually signing all of the papers in your house) rather than a title company or attorneys office… ask why.  Kitchen table closings can work, but using a title company or attorneys office helps protect both sides and makes sure things are done right.

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”.  In no circumstances should you do this unless you get your mortgage company’s approval in writing. Some of these scammers will then pocket your payments and not pay the mortgage company at all… harming your credit and causing you to be worse off 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 Utah Sell Now, LLC, 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’re in foreclosure and need assistance, 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 24 hours of our talk.  We can close in as little 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 long as you want to look over, pass the offer by those you trust, even shop the offer around to the other “we buy houses” companies if you want. We’ll be here for ya and you can get started whenever is right for you.

If you’d like a fair no-obligation offer today go here and fill out the short 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.

Essential Negotiation Tips
01 Mar, 2024
Negotiation is a critical element in the realm of real estate transactions. Its effective application can significantly influence whether a property sells quickly or lingers on the market. In the context of Utah's diverse real estate landscape, from the suburban homes of Layton to the bustling streets of Salt Lake City, mastering the art of negotiation is indispensable. Negotiations give sellers and buyers the platform to agree on terms that satisfy both parties' interests, often leading to a quicker sale when executed proficiently. Not only does this involve the exchange of price offers, but also the many other conditions of the sale.
Preparing Your Home for a Swift Sale
29 Feb, 2024
Selling a home is a significant undertaking, and preparing your property for sale can make all the difference in attracting potential buyers and securing a swift transaction. A well-prepared home not only enhances the property's appeal but also maximizes its market value. This guide aims to walk homeowners through the essential steps of home preparation, including decluttering, deep cleaning, and staging, to create a captivating first impression. We will explore how to cultivate a neutral yet inviting atmosphere and discuss strategic upgrades that can expedite the selling process.
Curb Appeal
21 Feb, 2024
First impressions are crucial, especially when it comes to selling your home. How your property looks from the street can significantly influence a buyer's decision to take a closer look—or to keep on driving. That's why making your home's exterior attractive and welcoming can be just as important as preparing the interior for prospective buyers.
Home Sale Value
14 Feb, 2024
Small repairs often have a disproportionately large effect on a home's market value. Addressing minor issues, such as fixing leaky faucets or patching up scuffed walls, can lead to a significant increase in buyer interest and a higher selling price. Studies demonstrate that investing in minor repairs before listing a property can yield a strong return on investment (ROI), making a home more appealing to potential buyers and helping to secure a quicker sale.
Pricing Your Home for a Quick Sale
12 Feb, 2024
When you decide to sell your home, setting the right price from the get-go is crucial. It's not just about attracting potential buyers; it's about sparking enough interest to make a quick sale. This lays out straightforward strategies to help you find that sweet pricing spot. Whether you're eager to move on to your next adventure or need to sell fast for other reasons, these tips will guide you through the process smoothly and efficiently.
Utah's Economic Developments
07 Feb, 2024
Over the past few years, a noticeable change has taken place in the state known for its stunning national parks and ski resorts. This change, significant and far-reaching, has affected various sectors, with a particularly strong impact on property and businesses. As the economic landscape of this region evolves, we witness a cascade of effects throughout the local markets and communities.
Utah's Real Estate Demand
29 Jan, 2024
Utah's real estate scene is currently a hotbed of opportunity for those looking to sell their properties. With demand outpacing supply, the market conditions are favoring sellers, offering them a unique chance to capitalize on their investments. This bustling market environment presents an ideal time for homeowners considering selling their properties to make their move.
Utah Home Sale
23 Jan, 2024
Successfully navigating Utah's real estate market requires a nuanced strategy, especially when differentiating between urban and suburban settings. It is crucial to align selling tactics with the unique characteristics of each area.
Emerging Neighborhoods
21 Jan, 2024
As the American Dream has evolved, the vision of a home with a white picket fence has persisted, finding a modern expression in the suburbs. Utah's suburban areas, in particular, have seen a significant demographic shift. A blend of cultural values, the search for quality living, and economic opportunity has led to growth that paints a picturesque representation of suburban appeal. Statistics from recent years underscore this trend, with the population in counties like Utah County and Washington County outpacing that of urban centers, fostering a landscape of thriving communities outside of the city's hustle.
Utah's Geography
17 Jan, 2024
Utah's unique landscape, from its towering mountains to expansive deserts, significantly impacts how and where people choose to live. This influence extends deeply into the real estate market. Whether it's the appeal of mountain living or the convenience of urban centers close to natural wonders, Utah's geography shapes housing trends and choices.
More Posts
Share by: