Be careful of short sale scams

We received an email inquiry yesterday from a homeowner facing foreclosure. He was approached by an investor offering to buy his home for well below market value and negotiate his short sale for him. Because the sale date was approaching quickly, he insisted on an immediate response.

Do not act from a position of fear. There are a lot of scams out - please be very careful. These investors most definitely do not have your best interests at heart. They do not care about your tax consequences, your financial position or your personal liability from deficiency judgments. It is imperative to consult with both an attorney and CPA before moving forward with a short sale, foreclosure or bankruptcy.

When we help clients with their short sales, we do the following:

1) We engage professional negotiators who work directly with the lenders.

2) We market the property to find a patient buyer who understands the process.

3) We do everything possible to help the homeowner avoid foreclosure and accomplish their goals.

However, before we do any of that, we insist that a homeowner contact an attorney and CPA. Do not trust anyone who claims to have the solution and doesn't advise you to consult legal and tax experts. Also, do not trust what you read on the internet. Even through the articles we write are well researched, every homeowner's situation is different. There are too many variables, options and desired outcomes to take "cookie-cutter" advice and apply it to your personal situation.

Good success to you,

Seven Gables Real Estate

License #01727426

www.TheOCExperts.com

www.OCMarketUpdate.com (blog)

Direct: 714 276-7006

Fax: 714 917-2293