SENIORS vs CRIME

Polk County, Florida

A Joint Project Of

THE POLK COUNTY SHERIFF'S OFFICE

GRADY JUDD - SHERIFF

AND

THE FLORIDA ATTORNEY GENERAL

Lakeland Office Davenport Office

Dick Fearnow, Office Manager Paul C. Cameron, Office Manager

Hours: Tues. & Thurs. 9:00 am - 1:00 pm Hours: Mon. & Wed 9:00 am - 1:00 pm

Phone : 863 - 413 - 3000 Phone: 863 - 424 - 8475

Email: seniorsvscrime@gmail.com Email: eastpolksvc@gmail.com

Real Estate Scams & Frauds

Beware of The Con Artist

Con artists may use several methods to swindle you in a real estate fraud scheme. Foreclosure Bailout, Home Equity Fraud and home renovation scams are just a few types a real estate fraud which may be encountered.

Foreclosure Bailout

Victims of this type of real estate fraud are generally homeowners who have negative equity, or owe more on their homes mortgage that their home is worth. They have a real problem, they need to sell their home, and must do so at a loss or let the mortgage company foreclose. At this point a so called "Bailout Specialist" will offer the victim the opportunity to arrange for a short sale of their home. In this form of fraud, the homeowner usually will be told that for a fee of $1,000 to $2,500 , the homeowner can deed the home over to the bailout specialist and then rent it back. The bailout specialist takes the money, does not arrange for the short sale, and does not make any payments on the mortgage. The end results are that the home loan payments are not made and the mortgage goes into foreclosure, without the victim being aware of any fraud. Ultimately, the home is foreclosed upon; the victim is evicted, and loses both his home and the $1,000 to $2,500 fee charged by the so called specialist as he is now long gone.

Home Equity Fraud and Home Renovation Scams

Be very careful when using your home or your home equity as security for a home improvement loan. Fast talking salespersons will offer to refinance your home at a lower interest rate to provide cash for the homeowner, the cash can be used to pay for home improvements or to pay off bills. Victims are frequently asked to sign blank contracts or contracts they were not allowed to read before signing. Later, the homeowner discovers that they signed a contract that contains terms in contrast to the originally promised terms. this results in the loss of equity in the victims home, and they have also signed a mortgage in which they have incurred considerably higher interest rates. The home owner is now faced with a higher mortgage payment, one they may not be able to afford.

WHAT CAN I DO?

Talk to your Bank or Mortgage Company first, you will find they don't want to take your home. Ask them if there is some way they can help. Be honest, tell them exactly how you got behind in your payments. They will do their best to work with you.

How do I avoid these scams?

1. Never sign anything until you have read and understand it.

2. Make sure all blanks are filled in.

3. Don't make a major commitment until the next day. Think about it!

3. If unsure have a trusted person or organization review the document.

4. Make sure the company is fully licensed.

BE CAREFUL!

Be very careful going to another source for a new mortgage, especially if they are advertising on TV or the web. Check them out carefully. Call the Department of Financial Services at (813) 899-6160, ask if they have information on the new mortgage company or buyer that claims they will rent your home back to you.

Paul C Cameron, Webmaster