Salt Lake City, Oct 21, 2005 / PRNewswire / Perfect Home Living is urging families in Utah that may be facing foreclosure to take caution.  Utah, a state ripe for mortgage and real estate fraud has fastly become a beacon for "real estate investors" and "foreclosure rescue services."

The upsurge of criminal activity within Utah's real estate community has maliciously descended upon Utah families bringing with them the lure of fast promises and false hope.  Perfect Home Living routinely works with Utah families facing foreclosure and often sees firsthand the destruction that this unchecked criminal element brings.   

Most of the criminal scams work like this:

1.  The home owner receives a Notice of Default and suddenly becomes inundated with phone calls, mail and knocks on the door from investors and foreclosure rescue service companies.  These individuals obtain defaulting borrowers personal information from daily Notice of Default lists produced by Title Companies, County Recorder's Office  and various other Third Party subscription services.   

(During this difficult time it is important that families facing foreclosure remain in constant contact with the defaulting mortgage company.  The mortgage company understands that you can't pay (Divorce, Death, Job Loss) but by communicating with them it also shows the homeowner's commitment to correcting the problem.  In addition, depending on the homeowner's situation, mortgage lenders have programs in place that can delay payments or provide payment alternatives.)

2.  Families working with investors or foreclosure rescue service companies will routinely hear pitches like the following: The investor or foreclosure rescue service company will bring the homeowner's payments current in exchange for the "DEED" to the house.  Seeking to end financial stress in the fastest manner possible homeowners warranty deed or quit claim their properties to investors and foreclosure rescue service companies.

(Keep in mind that once a homeowner's delinquent payments are brought current the defaulting mortgage company will not accept a short sale of the home.) 

3. Investors and foreclosure rescue service companies explain to homeowner's after receiving the deed to the property that instead of paying all delinquent charges the investor or foreclosure rescue service company will negotiate a total payoff of the loan.  Because investors and foreclosure rescue service companies are not making payments late fees and interest continue to accrue for the defaulting homeowner. 

(The average short sale of a home takes 2 - 4 months).

4.  For families selling the home outright, there is a plan fee  that ranges from $500 and up for investors and foreclosure rescue service companies to negotiate with the defaulting mortgage company on behalf of the homeowner.

(It is important to note that any short sale negotiation according to HUD guidelines requires the homeowner to list the property with a licensed real estate agent and more importantly to continue living at the residence instead of moving out as many would suggest.)      

5. Should a successful short sale negotiation occur by the investor or foreclosure rescue service company, the former homeowner turned renter now makes payments to the investor or foreclosure rescue service company at interest rates almost guaranteeing the former homeowner's return to financial chaos.  Ex: An Investor or Foreclosure Rescue Service company negotiates with a lender to accept $80,000 instead of the $100,000 that is owed on the home.  Because the home owner didn't communicate with their mortgage lender, they are lead to believe the cost of the home remains $100,000 and thus makes monthly payments to the investor or foreclosure rescue service company at the higher dollar value. 

(Families that face foreclosure will repeat the process within two to four years of having received the original notice of default if they remain in the home.)  

6.  Investors and foreclosure rescue service companies have time clauses placed within contracts that stipulate the former homeowner must secure new financing within a specified time. 

7.  Failure for the former homeowner to secure financing within the specified time allows the investor or foreclosure rescue service company to legally sell the home and collect all  proceeds from the sale.   

In conclusion, Perfect Home Living recommends that Utah families always use professionally licensed individuals; keep all correspondence from your mortgage lender even if you choose not to open your mail; if you should rely upon the services of an investor ensure to ask for written contracts that include the specifics of what you want and how it is that you understand the contract reads.

For further assistance please contact Perfect Home Living:

Online: www.PerfectHomeLiving.com

Email: foreclosurehelp@PerfectHomeLiving.com

Tel: 801.668.3389 Monday - Saturday 9AM - 8PM MST