Beware of wolves in sheep's clothing

In the past year there have been many people trying to get rich quick by praying on people in foreclosure or just on the brink of foreclosure. They play the role of someone who just wants to help out. Ultimately they take you to the cleaners. Here's one example:

An agent comes to you saying, "Work with me, I'll list your home and it will be sold before the foreclosure process takes your home". So far so good, that in and of itself is a good idea. Then the trouble starts, they have you sign your property over to a trust, and they are the ones controlling the trust, whether they are the beneficiary or not they have the control. Once you've signed it over to a trust they control you've lost your interest in your property. They find a buyer and write a purchase and sale agreement between the trust and a buyer. Then they negotiate a reduced payoff on your existing loan. This illegally creates proceeds on the sale that goes to the beneficiary of the trust and you, as a seller won't see any of those proceeds. Not only is the agent receiving commission they are also receiving the proceeds on your property.

The main thing to watch out for is you don't sign your property into a trust where someone other than you has created it and where you are not the beneficiary. Additionally, never sign your interest in a trust over to your agent or someone you don't know. You will lose your rights to your property. This real estate scheme has fraud involved on several levels. Beware!!

Start by interviewing a few, and understand your rights. Talk to a CPA/Tax adviser to find out what you may owe in the way of taxes if the bank forgives some of you loan. Talk to the lender, find out if they can restructure your loan before you attempt a short sale.

Finaly if you have to sell your home, do it the old-fashioned way and work with a reputable REALTOR.