Beware of Foreclosure Scams in Nevada

Posted on December 20th, 2007 by saman

Rescue schemes for foreclosure are themselves fraud – warns Catherine Cortez Masto, Nevada Attorney General and Ross Miller, Secretary of State.

According to reliable reports Nevada tops the nation in foreclosure filling numbers. Law enforcement authority said, this is the reason for reported increase in foreclosure scams.

There are companies who say that they can help to get freedom from foreclosures. These companies ask customers to sign tricky contract which has clause that turns ownership of the property to the foresaid foreclosure-freedom company. There are clauses in such contracts that leases home to the customer and customer can buy-back the home in future.

Many fraud companies take advantage of customer’s fear of losing home. Foreclosure-freedom companies design schemes that fail, and customers become prey to such scams, losing their own homes.

Cortez Masto said, “Unfortunately, foreclosures are rising in Nevada, giving fraud companies chances to cheat home owners desperate to possess their asset.”

Here is an example of scam active in Nevada. The perpetrator approaches target defaulters through the mail with assurance to stop foreclosure in their name by dealing directly with their lenders and saving their credit.

The responsible party will offer to purchase the home for the amount on it, with added bonus of small cash. They ask the victim to sign a contract, a deed of sale and a transfer tax form. According to the deed, seller is selling the home to a company. The executor pays the cash to the customer and give him/her guarantee that the company will be responsible to pay off any loan left on the loan.

After the customer signs the contract and moves out of the house, the perpetrator use this house for rental purpose and does not pay loan, ending up into the foreclosure for that house. The foresaid foreclosure freedom company can continue to take rental fees until the foreclosure procedure is done. The victim does not get any benefit from the rental fees, and renters are force to leave the house when foreclosure is completed.

Anyone who come across such scams and frauds with similar characteristics should inform the
Las Vegas office for Secretary of State’s, whose telephone number is 702 486 2440.

Miller is giving helping hand, who said, “In recent, slow down market, number of people may want or need to sell their properties. When sellers become desperate to sell, they are easy prey for scammers. If something is not under the jurisdiction of State’s office, we’ll guide for the proper agency who can deal with that thing.”

Miller and Masto advice people in the foreclosure to get aware of the all options available for them. At first, consumers must contact their lenders and talk to them if there are problems for regular mortgage payment.

The problem will be worst if you make any delay in contacting and communicating with the lender. There are legal services, licensed debt counselors and government agencies who offer assistance. Go to qualified professionals for advice.

You can report about home foreclosure “freedom” fraud at the Attorney General’s Bureau of Consumer protection in Las Vegas at 702 486 3194 or in Carson City at 684-1180.