play the role of coach<\/strong>.<\/p>\n\n\n\nInform the distressed homeowner of their options. Coach them through the process of what they can do to make the most of their situation.<\/p>\n\n\n\n
By doing this, you establish trust with the homeowner that increases the odds of you obtaining their home as they near foreclosure.<\/p>\n\n\n\n
Instead of falsifying bankruptcy documents and committing identity theft to mortgage servicers, you will have effectively helped the homeowner shelter their largest asset from foreclosure.<\/p>\n\n\n\n
This will put you in a good position to help them with the strategy you entered the deal with.<\/p>\n\n\n\n
Is there an opportunity for you to buy them out by paying off the mortgage for them? The homeowners would miss out on some equity they have, but their problem would go away. In this situation, you own the property, can rent it out, and likely have some equity.<\/strong><\/p>\n\n\n\nOr maybe there is an opportunity for you to buy the property subject to and assume the homeowner\u2019s mortgage payments.<\/p>\n\n\n\n
This is all part of your research process and should be established prior to entering the homeowner\u2019s life.<\/p>\n\n\n\n
<\/span>The Foreclosure Fraud\u2019s Fallout<\/span><\/h2>\n\n\n\nThe alleged scheme impacted multiple victims, resulted in a loss of about $6 million, and affected more than 200 properties, including properties with loans insured by the Federal Housing Administration (FHA) and loan servicers Freddie Mac and Fannie Mae.<\/p>\n\n\n\n
Many of the homeowners involved in the scheme ended up losing their homes to foreclosure in spite of allegedly paying the defendants hundreds of dollars. <\/strong><\/p>\n\n\n\n\u201cOur objective is to ensure that the public is not taken advantage of when they have fallen on hard financial times,\u201d said Michael Gibson, the Special Agent in Charge of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG).<\/p>\n\n\n\n
\u201cDistressed homeowners are particularly vulnerable to this type of fraud. An important message has been sent today to those who prey upon homeowners who are seeking financial assistance with their mortgage and we will remain vigilant to hold them accountable. This type of fraud not only affects individual families, it also affects the housing market.\u201d<\/p>\n\n\n\n
The case stemmed from a joint investigation by the California Department of Justice\u2019s Division of Law Enforcement\u2019s White-Collar Investigation Team, along with the FHFA-OIG, the United States Department of Housing, and Urban Development Office of Inspector General (HUD-OIG).<\/p>\n\n\n\n
\u201cIndividuals who choose to prey on vulnerable Californians at risk of losing their homes will be held accountable,\u201d the attorney general said. \u201cThe Department of Justice will continue to work with our law enforcement partners to identify and prosecute those who disregard the law in order to make a profit.\u201d<\/p>\n\n\n\n
<\/span>If You\u2019re Going to Pursue Pre-Foreclosures, Do It the Right Way<\/span><\/h2>\n\n\n\nIn any pre-foreclosure deal, you find value in pursuing, you are entering the homeowner\u2019s life to relieve them of their circumstances. Through listening, educating, and coaching, you will end up with the property and they will avoid a foreclosure on their credit report. <\/strong>They will feel good about the deal they made and, more importantly, who they made the deal with a win-win situation.<\/p>\n","protected":false},"excerpt":{"rendered":"A lawsuit has begun in California where nine people are accused of being involved in a $6 million scheme that claimed to prevent the foreclosure of properties throughout Southern California, California Attorney General Xavier Becerra…<\/p>\n","protected":false},"author":19,"featured_media":2720,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[232,279,309,308,310],"class_list":["post-2716","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-articles","tag-crime","tag-leads","tag-marketing","tag-pre-foreclosure","tag-subject-to"],"_links":{"self":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/2716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/comments?post=2716"}],"version-history":[{"count":4,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/2716\/revisions"}],"predecessor-version":[{"id":2721,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/2716\/revisions\/2721"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media\/2720"}],"wp:attachment":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media?parent=2716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/categories?post=2716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/tags?post=2716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}