Introduction

Facing foreclosure or considering a short sale is already stressful, and unfortunately, there are people who prey on homeowners in vulnerable situations. Scam artists promise quick solutions, cash offers, or guaranteed approvals—but their real goal is to take advantage of your financial hardship.

The good news is that by knowing the warning signs and sticking to trusted resources, you can avoid scams and move forward with a legitimate short sale that protects your future.

Common Scams to Watch Out For

Upfront Fee Scams
> Scammers often ask for large fees before doing any work. A legitimate short sale expert or real estate professional does not charge upfront.

“Guaranteed” Loan Modification or Short Sale Approval
> No one can guarantee that a bank will approve a short sale or modify your loan. If someone makes that promise, it’s a red flag.

Title Transfer Scams
> Be cautious if someone asks you to transfer your property title. This can leave you without your home and still responsible for the debt.

Cash-for-Deed Schemes
> Offers to pay you cash in exchange for signing over your property often leave homeowners with no legal protection.

Safe Steps Homeowners Can Take

Work with Experienced Professionals
Partner with specialists who have direct experience with lenders. Learn more about the short sale process for homeowners.

Verify Credentials
Check licenses for real estate agents and confirm that anyone assisting with a short sale has a solid track record.

Avoid Signing Documents You Don’t Understand
Always read every document carefully and consult with an attorney before signing anything that transfers ownership or creates new obligations.

Conclusion

While scams can make a difficult situation worse, you have the power to protect yourself. By staying informed, working with trusted professionals, and being cautious with offers that sound “too good to be true,” you can avoid fraud and pursue a legitimate short sale that helps you move forward.

If you’re unsure about your options, start by connecting with our team through the Homeowners Page

The Federal Trade Commission (FTC) provides additional guidance on recognizing and avoiding foreclosure scams: https://www.consumer.ftc.gov/articles/foreclosure-scams