While you’d think most of the bad apples were driven out of the mortgage and real estate industry when the bubble burst, there has actually been a dramatic rise in real estate related fraud since 2008. How does this affect those selling a home today?
The last couple of weeks have seen more announcements by the government of lawsuits against major lending institutions including Wells Fargo as well as revealing over 530 people have being charged for mortgage and foreclosure fraud, with the intent to pursue many more in the near future.
This brings a few red flags and challenges for homeowners selling a home today; especially for those who are struggling to keep up housing payments, are facing foreclosure or those who are simply underwater.
For a start this definitely breeds more and perhaps well-earned distrust of banks and major financial institutions. There is no question that mortgage lenders are now delivering real help to some homeowners via short sales, reducing mortgage balances and loan modifications. This help shouldn’t be turned down but that doesn’t mean trusting the bank blindly or believing they will automatically give you the best deal.
Obviously this also again raises the concern about dubious foreclosure rescue firms demanding upfront fees so where should borrowers be turning for help?
Perhaps the best solution is either to consult an established real estate attorney you seek out, not one you’ve been receiving junk marketing from, or simply selling a home to reputable investment firm for cash quickly or both.
Know that there is help to be had and while it may seem confusing and daunting to know where to turn doing nothing is certainly far worse and can lead to far more severe consequences than most understand.
