By: Realtor in CA

Realtor in CA — Sun, 20 Dec 2009 11:08:02 +0000

One aspect of this scam is that you take over payments when the owner signs the deed over to you. Unfortunately this does not protect either party.
The owner still has the loan in their name, the pre-foreclosure “expert” is making payments to the bank directly with a cashiers check (no tracking of personal checks). If they quit making payments, the original loan is still being foreclosed on as before, but the owner no longer has the house.
The main risk is that if the bank finds out, the “due on sale” clause in all loans is triggered and the original owner now has to pay the remaining balance of the mortgage principal and all the payments you made are gone.
Besides being illegal because of the avoidance of the “due on sale” clause. nobody wins in the long run.
When you take over the property and want to sell it, the title search will show that the original loan as a lean and now the lender will discover that you own the house (deed transfer).
Once again, if they are so sure about their “system”, why aren’t they doing it instead of selling a $50 book about it?
Remember: “Those who can, do! Those who can’t, teach”

By: godged

godged — Sun, 20 Dec 2009 11:08:02 +0000

Preforeclosure is the scam aspect of this scheme.
The owner stilll owns the home, this is a short sale situation. In 100% of short sale situations, the lender will have to approve any sale contract. Lenders are not in the habit of taking ridiculously low offers for their properties.
So, yes, this is a scam.

By: estielmo

estielmo — Sun, 20 Dec 2009 11:08:02 +0000

This concept might make you money, but it is commonly thought to be a way for you to scam people behind on their payments.

Comments on: Is Every Online Offer With This Format A Scam?

By: Realtor in CA

By: godged

By: estielmo