Appraisers' Free Forum

Close door on real estate fraud

If someone offered to sell you beachfront property — cheap — you'd immediately be wary. Even in our great state, with more than 1,000 miles of coastline, a place on the beach commands a premium. Anyone offering it for a song is probably trying to pull a fast one.

Unfortunately, scam artists are becoming increasingly clever. They're taking advantage of the declining real estate market and looking to make a quick buck from nervous homeowners.

It has happened to plenty of savvy homeowners. They get behind on the bills, maybe because of illness or a death in the family. A smooth-talking representative appears with a plan to allow the family to tap into their equity. Before long, they've lost the home they spent years caring for.

So how can you protect your family's most prized possession?

First, understand that legitimate lenders want to help you. If it looks as if you'll be short a bit in a given month, don't wait. Call your lender right away.

Any real lender will have something it calls a "loss mitigation department." Its job is to make sure the company doesn't lose money by being forced to foreclose on homes. Really. No legit lender wants to take back your house.

"Lenders always lose money on foreclosures, even in a rising market," Rachel Dollar, the publisher of Mortgage Fraud Blog, told MSN. That's a great way to identify someone who's attempting to pull a fast one. Anyone who encourages you not to contact your lender is probably scamming you. Real lenders make their money when you make your payments every month. They're usually willing to work out a repayment schedule that suits your needs.

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