With economic fears that a recession is coming, a scam from the Great Recession period has resurfaced. There are a few different names to it but if you fall victim, you’ll end up signing over the deed to your house to a criminal. Once you do, there is no way to recover.
During the Great Recession over a decade ago, millions of Americans were threatened with foreclosure. Scammers saw this opportunity and contacted desperate homeowners with a plan to avoid foreclosure. These weren’t foreclosure experts; they simply took advantage of the local government’s foreclosure database.
There are several variations to this scam. They could offer to modify your monthly mortgage payments, making them more affordable. They could also have the homeowner sign over the deed to the property to a trusted relative who’s not on the mortgage. All variations will require the homeowner to sign several legal documents, where one of which will transfer ownership of the property. Once the deed is filed, the homeowner is technically trespassing on the property and can be evicted.
According to a report from the Great Recession time period of 2008, this scam can also be combined with identity fraud. If the criminal manages to steal the homeowner's identity, the property could be transferred without them knowing. This process is more complicated but follows some general steps. The con artist will choose a house to steal and focus on stealing the homeowner’s identity. They’ll get personal information such as their Social Security number, driver’s license, and other forms of identification. Once they have this information, they can forge the homeowner’s signature on documents to transfer the property. Once they complete the forms and file them, the house is theirs.
To avoid this scam, be very wary of anyone who contacts you promising a simple solution to your problem. If the “foreclosure specialist” becomes aggressive or uses high-pressure tactics to force you to agree to something, break off any communication with them. Never sign any documents in these situations, and never sign over the deed to your home to a stranger.
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