Foreclosure 'rescue' scams= short sale? Robert Allen? Real estate seminar?
Question:
Answer:
These type of deals are not illegal, but some unscrupulous investors set up homeowners in payment plans that are simply unaffordable. They know the foreclosure victims are desperate to save their homes and they take whatever option they can get to avoid foreclosure.
The problem comes in when the investor gives the foreclosure victims a leaseback/buyback payment that they know the homeowners can not afford. In some cases like this, the homeowners will sue the investor and the courts will declare the leaseback an illegal loan that was designed to take the collateral. Far too often, this is true, because some investors target homeowners in desperate situations like this.
The government lets it go on because there are a lot of legitimate investors who do similar deals and they can not restrict trade deals like this. They can prohibit the clearly predatory deals and try to protect homeowners, but they can't just ban a completely legitimate transaction.
And they certainly can't ban seminars that teach the concepts of this type of deal. Most of the seminar "gurus" don't advocate taking advantage of homeowners, in any event.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
Certainly not illegal and in many cases beneficial to buyer and seller. These sales can rescue a borrowers credit record and save the lender money. Robert Allen offers a lot of insight to the novice. The only probably with seminars is that they paint "too rosy" a picture.
I am a Realtor and investor with over 30 years experience.
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