Ever since the purchase of Manhattan from the Indians, and the many sales of the Brooklyn Bridge and Florida Swamp Land, Real Estate deals have suffered rackets, cheats, schemes and scams. These deals color our industry's image and reputation.
"I'm from the Real Estate Industry. And I'm here to help."
These scams make Real Estate Professionals look more like used car dealers, horse traders and parking- lot watch salesmen, than the licensed professional accountants, lawyers and doctors we want ourselves compared to.
The latest Real Estate scam is covered in a Business Week article, "The Foreclosure Rescue Racket" from their June 25, 2007 issue. The scam is facilitated by Websites publishing lists of court filings for "notice of trustee sale", the first step in the foreclosure process. As soon as the list publishes, "notice-ees" are deluged by torrents of "rescuers" and lanced by scores of white knights, like FSBO's after their first "for sale" notice and fish on Trout season opening day.
The "Real Estate Rescuers" put "The Skewer" back in "Rescuer".
The Foreclosure Rescue Racket is rife with pitches, paid seminars and infomercials. Nathaniel X Arnold of Real Estate Investor's Advantage (REIA) must have fancied himself, "The Tony Robbins of Real Estate Rescue" with his $1995 Seminars, Infomercials and "Real Estate Exchange & Profit System". But now he's facing bankruptcy. Maybe some of his former clients will help?
"I scheme, therefore I scam."
In closing the "rescue the home owner" deal, all the owner has to do is sign over his home to the investor, who then proceeds to charge rent at a rate insuring eviction, then pockets the equity. Nice deal if you can scam it. Another reason not to sign any contract related to your home without approval from your lawyer.
Few recent 100%-mortgaged owners are contacted. Only long time, cash poor, equity rich, unknowing, unsuspecting homeowners. I may be too much of a skeptic, but I wonder why?
Some States are moving to protect homeowners from these scams.
It behooves the NAR, the Lenders'Organizations and the Consumer Protection Services to educate our present, former and future customers to the scams and the scammers.
You pay for your education in one way or another.
Adapt Or Die! Happy Searching.
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