Bryan Crabtree

A smooth-talking salesperson tells you he can renegotiate your mortgage with your lender and help you keep your house. He'll require a fee (as much as $1,000 or more) before he can start. Problem is, the "deal" he gets is one that you could have gotten on your own, and it probably won't be enough to keep you in your home. However, because he was "successful" in getting the loan renegotiated, he has technically earned his fee and there's little that you can do about it. You don't have to pay someone else to negotiate with your mortgage company. If you're having problems making your payments, contact your lender yourself.

Mortgage rescue scams target people who fear losing their home and ruining their credit due to foreclosure. A "real estate investor" contacts you and offers to bring your payments current if you'll sign over the deed. He offers to keep making the payments in the future. You'll need to move out so he can rent the house, but you won't have a foreclosure on your credit. Here's what really happens: the "investor" rents the house, but he'll never make a mortgage payment. Eventually, the bank will foreclose, you get the black mark on your credit and the renter will be evicted. The only one who gains is the "investor," who collected his free rent.

The banking crisis is presenting scammers with another golden opportunity. We're hearing numerous complaints about official-looking e-mails that claim to be from a bank or from the FDIC (Federal Deposit Insurance Corporation). These e-mails prey on your fears, claiming your bank is in trouble or that money has been stolen from your account. Most ask for your personal information, which they then use to steal your identity or illegally access your account. If you receive an e-mail from your bank requesting any personal information, contact your bank immediately and do not respond to the e-mail.

According to the Federal Trade Commission, there is a new round of e-mail scams out there that are tied to the financial crisis. Many of these e-mails "phish" for personal information -- your Social Security number, account numbers, passwords, etc. The scammer then uses that info to steal your identity. Proceed with extreme caution if you get an e-mail that purports to be from your mortgage company, a government agency, or other official institution. If the e-mail is requesting ANY personal information, you know it's a scam. No government or reputable financial institution will ask you to share confidential information in an e-mail.

THIS - from the New York Times:

"Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers."

Let's just hope the media writes even more positive articles and rates continue to fall. This certainly will have a positive impact on the real estate market's recovery.

Read more of the article:

http://www.nytimes.com/2008/12/06/business/yourmoney/06money.html?_r=1&em

For more on Charleston SC Real Estate Mount Pleasant and Summerville, go to Housedog.com.