Utah needs help, not scams. In this troubled economy home owners facing financial hardship need answers, but are often getting wolves in sheep's clothing.
"Investors" offering effortless loan modifications often receive huge up front payments, sometimes exceeding $5,000 (which makes one wonder why the home owner didn't pay the money to the bank, but that is another issue)! One thing to note is that IF these companies are able to negotiate a loan modification the borrower could have done it themselves. If they are unable to help, the home is poised to be taken in a foreclosure.
Many of these same investors without a penny to their name have been luring real estate agents into "selling" them their homes. They have no intention of actually buying the homes, but rather submit low-ball offers to the banks, while restricting other valid offers, without notifying the banks, the sellers, or the would-be buyers. For some reason real estate agents are all to ready to help out with this deception, often having their sellers sign underhanded agreements saying that they only want to see one offer (all in the name of keeping the transaction smooth). But do they explain that the one offer that will be submitted, will be extremely low, with a pre-arranged house flipper? Not a chance. Real estate agents who engage in this practice are looking for an easy transaction, and a quick buck. Just like the good old days when property values were on the rise and everybody wanted to buy. Taken to the extreme, some agents are actually steering clients into writing dual contracts (a form of loan fraud where the banks do not get to see all of the paperwork in an effort to mislead the bank into accepting lower priced offers).
Here are a few examples of what is happening in other states;
We need the Utah State Government to begin enacting regulations to get rid of the plague in Utah as well.
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