Be Aware of Short Sale Fraud

Homeowners concerned about foreclosure may be vulnerable to predatory “rescue” scams which may cost you money with no results, result in the loss of your home entirely, or involve you in a fraudulent scheme. To learn more, go to:

www.efanniemae.com/utility/legal/pdf/fraudnews/mortgagefraudnews0709.pdf

“Red Flags” of fraudulent schemes consist of:

•             Promises to stop the foreclosure

•             Significant upfront fees

•             Instructions never to contact the lender

•             Transfer of title or lease of the house

•             The proposed buyer is an LLC

•             Demands that the homeowner execute a power of attorney

•             The proposed buyer, at the buyer‘s sole expense, retains a third party to negotiate the short   sale for the seller‘s benefit

Report suspected scams to the department of Financial Institutions at fraudline@azdfi.gov; the Attorney General‘s Office at www.azag.gov/consumer/foreclosure/index.html#Complaint or Neighbor Works© at www.loanscamalert.org/default.aspx

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