Although far less common today given the recent decrease in home values, an owner facing foreclosure may be approached by people offering a “short sale” or some other property transaction that will supposedly help the owner get out of this bad situation. Before entering into any such transaction, the owner should consult an attorney.
Many short-sale buyers are investors who are actively looking to purchase properties at below-market prices so as to realize a quick and easy profit. Less money to the seller (or to the seller’s lender) means more money to the investor/buyer, so sellers should be leery.
“Investors” may even resort to complicated and typically illegal schemes in their efforts to make money at the owner’s expense, particularly where the owner is facing foreclosure of the family home. The structure of such a transaction can vary widely, but they all fall within the general term “foreclosure rescue scam.” One common version is for the owner to convey title to the property to the “rescuer” and then to lease the property with an option to buy in the future. Typically, the renter (former owner) is unable to make the rent as well and is eventually evicted, leaving him with nothing.
As a general matter, you should not sign ANYTHING that alters or affects your ownership of your property until you have had it reviewed by an attorney–particularly anything identified as a “deed” (whether Quit Claim Deed or otherwise). While an attorney costs money, you will be far more likely to avoid being victimized by one of these “too good to be true” offers.
We can assist if you are offered a short sale or some transaction that will supposedly allow you to “keep” the family home.
