Predatory Profiteering: Foreclosures "Classes" and "Seminars"

[CorpGovActivist]

Have you seen or heard the recent how-to-profit ads for foreclosure "http://www.google.com/search?hl=en&q=foreclosure+class">classes" or "http://www.google.com/search?hl=en&q=foreclosure+seminar">seminars" in your area?

Something tells me that http://financialservices.house.gov/">House Financial Services Committee Chairman Barney Frank - http://financialservices.house.gov/predatory.html">predatory lending critic - may hold hearings in the new year on this emerging development.

- Dave

[flashl]

1. The same people to help create the subprime crisis and brokered the deficient home loans

have created their cottage industry to continue to prey upon the same people as foreclosure specialist.

[CorpGovActivist]

10. The Neil Bush Types n/t

[flashl]

12. There are warnings:

There are several types of Foreclosure Rescue Scams you should be aware of:

o Foreclosure Prevention Specialist – phony foreclosure counselors.
o Phantom Help - charges high fees for work the homeowner could do themselves.
o Lease/Buy Back – homeowners are deceived into signing over the deed to their home.
o False Bailout – the homeowner is lead to believe that they can rent their home from the new owners and eventually repurchase the home.
o Bait and Switch - the homeowner thinks they are signing new mortgage documents, but are actually signing over the deed to their home.

[CorpGovActivist]

13. Good Info

Scum, huh?

- Dave

[peekaloo]

2. my favorite line from them :"We're not capitalizing on people's misfortunes,

we're actually saving them from a bad credit rating."

makes me all warm and fuzzy, I tells ya.

[CorpGovActivist]

5. Well, As Long As There's a Silver Lining! n/t

[NC_Nurse]

3. These classes have been around forever.

Hardly an emerging development. I would think there is probably a lot more risk now that
there are so many foreclosures out there.

[CorpGovActivist]

4. "Distressed Properties" in Realtor Parlance...

... and - while some make a living buying these and reselling them for a profit - I'd honestly never noticed a foreclosures seminar advertised before. Maybe it's just that it's finally hitting the DC burbs.

- Dave

[flvegan]

11. Remember Dave Del Dotto?

I hear he's a brewer or winemaker somewhere now.

[NC_Nurse]

15. Carleton Sheets, anyone?

He's been on TV forever. Go to any Barnes and Noble, there will be tons of books on this...
foreclosures, REO's (bank-owned), flipping houses, renting houses, on and on...

I vaguely remember Del Dotto, he's got a lot of company.

[Gidney N Cloyd]

6. I think a lot of the "Flip This House" activity the last few years is based on >

> taking advantage of buying property from financially troubled, "motivated" sellers (or banks, if the sellers don't move fast enough). I wouldn't ever be comfortable making a profit that way even though I know that my not buying a foreclsoed or soon to be foreclosed property doesn't put the owners any less out on the street.

[CorpGovActivist]

7. I Know of Instances in Which "Flippers" Became...

... "funders" - that is, they took a distressed family's mortgage (often at a jacked up rate), paid it off, kept the family in the home, and created a new, affordable mortgage.

The "funders" still make a decent return on their investment, their investment is secured by the mortgage, and the family maintains dignity.

- Dave

[Gidney N Cloyd]

19. That's a feel-good! Thanks for posting.

[CorpGovActivist]

20. You Bet...

... and if enough progressive investor groups did this, it could help lead to significant reforms in homebuying financing; plus, they'd find that the return is often higher than government bonds or bond funds.

- Dave

[area51]

8. Late night ads.

I've been seeing a lot of late-night ads on TV on how to profit off of homeowners' misery.

[CorpGovActivist]

9. One of My TiVos Caught One...

... that's what piqued my interest.

- Dave

[fed-up]

14. 2 foreclosures sold in Chico that were former meth labs, the investers had no clue-still for sale

1 year later as the price on both of them keeps dropping

the buyer of one that runs a "real estate investment club" told me that the charges were dropped so "it didn't matter...

with foreclosures there are NO disclosures


buyer BEWARE

my undisclosed to me former meth lab home was NOT bought through foreclosure-just a seller that was not honest...I am still screwed...as it takes $10k for an attorney to rescind the contract...

ask your local law enforcement about former meth lab status, but more importantly ask long time neighbors

it can run $5-10K for testing, then $10-150K for cleanup, most cleaning companies do not test the soil....

I would, never, ever have knowingly bought a former meth lab, I would never, ever buy one that was "professionally cleaned"

[CorpGovActivist]

16. Report the Selling Realtor...

... with a copy to his/her broker and the local paper. Most states have a regulatory agency where you can complain. In a case like this, the selling broker may find it worthwhile to refund some or all of their half of the commission.

- Dave

[fed-up]

17. I bought mine without a realtor, seller LIED on disclosure form-the other two houses

currently for sale were bought through foreclosure by investors. They are disclosing the fact the houses were former meth labs, which is why the houses haven't sold. But the comment that "charges were dropped" when I went to the investor club meeting was mind boggling. I did inform her of the dangers of former meth labs in no uncertain terms. I also tried to get a reporter to go with me to the meeting, but he couldn't be bothered.

I tried click, northern california legal aid, the realtor's assn, a dozen lawyers and can't find help.

THere is plenty of money out there for former tweakers, but none for the innocent victims of their crimes.

My only hope is to try for a liar loan (as my credit sucks from health issues) to pay an attorney.

I can't go public in the newspapers with my story in the hopes of finding a pro bono attorney because the seller would most likely hide their assets and even though I have been told I have an excellent case (with witnesses seller knew of meth lab status) the problem is collecting...

[CorpGovActivist]

21. Where in CA?

I might be able to suggest a few other resources.

I've heard enough horror stories about FSBOs now - yours being the latest - to say that having a realtor involved is a prereq now to any real estate deal.

- Dave

[rucky]

18. HUD has legit counselors for this...

http://www.hud.gov/foreclosure/index.cfm