Like you it seems as though I am always seeing advertisements to get rich quick helping people recover money the government has stolen from them! As a Realtor for over 20 years I have seen almost all of it, however with the housing market getting tighter and the hedge funds with long money buying up the foreclosures in Bulk and everything else they can get, the scammers are out and more aggressive than ever!
One scam that is currently going on is in the County Tax Sale arena. As a realtor I do not participate in these sales. Tax Sales are typically held monthly by the County in which the property is located. The debtor is a Public Record and the amount they owe the county is also made public. They may or may not have a 1st lien holder on the property. It is all up to the prospective bidder to investigate, in addition to about how much the property is worth.
The County holds an auction to collect the taxes after sending numerous notifications to the property owner.
The County sets the opening Bid for the amount of back taxes owed however the investors typically bid much more for the property to acquire it. Once the Bid has been accepted, the new buyer must pay the County that day in cash for their Bid amount or there are other repercussions the County may impose against them.
They must also wait through a redemption period of at least 12 months as the original homeowner is given the opportunity to pay the back taxes plus a fee of at least 20% to reclaim their property. If the homeowner does not reclaim the property after this time, then the county will issue them the remaining money collected after the taxes have been paid.
This is where the scam comes in at. The homeowner only has to fill out a 1 page form to reclaim their own money. It is easy and not complicated at all! They can call the county to get the form mailed to them or download the form which verify's they are the rightful recipient of the excess funds.
There are companies that call, send letters, and convince these homeowners to ASSIGN THEIR RIGHTS over to the company who promises to collect the balance on their behalf and pay them a portion!! Yes! These companies also push their webinars for hundreds of dollars to they can teach you to also be a scam artists!!!
Poor and elderly are the most injured by these tactics because they oftentimes are susceptible to sales tactics and pressure and some are not sophisticated enough to understand that they can ask the County for help in this matter and that one should NEVER Assign away their rights to any property they own without careful consideration of WHY they are doing it.
This is big business for some people and companies and it is only going to get worse. As a Realtor I have a code of Ethics.. but not every Realtor does. I will write another article on this very topic alone, but for now.. please never assign your right away on your property. Contact a trusted adviser to help you understand what your property is actually worth and to assist you in discovering the best option if you need to dispose of the property. Just because it needs repairs or may have some issues with title or probate, a trusted adviser can help you make the best decision for you and your family and ensure that YOU are the one that primarily profits from that decision.
You have nothing to lose. Realtors are paid at a closing unless they charge a retainer for their consulting services. But it is best to find out the highest and best use for your property and pay the commission. Is it really a deal if someone offers you $25 cash on your property and didn't tell you they are going to assign it to someone else for $125,000 and they will be making 100k? or if you are offered $5k for your property you lost in a Tax sale but you didn't know that 100k was paid for the property at the tax sale and you just lost $95,000?
We have to talk about these things and spread awareness in our community.. folks we are being robbed blind...
I am not an attorney but have been in this industry for over 20 years and unfortunately have seen not all of it .. but MOST of it! and I am happy to use my knowledge base to help people. There has to be a place you can turn to that puts Ethics above and beyond profit.
Let me know if I can help!
One scam that is currently going on is in the County Tax Sale arena. As a realtor I do not participate in these sales. Tax Sales are typically held monthly by the County in which the property is located. The debtor is a Public Record and the amount they owe the county is also made public. They may or may not have a 1st lien holder on the property. It is all up to the prospective bidder to investigate, in addition to about how much the property is worth.
The County holds an auction to collect the taxes after sending numerous notifications to the property owner.
The County sets the opening Bid for the amount of back taxes owed however the investors typically bid much more for the property to acquire it. Once the Bid has been accepted, the new buyer must pay the County that day in cash for their Bid amount or there are other repercussions the County may impose against them.
They must also wait through a redemption period of at least 12 months as the original homeowner is given the opportunity to pay the back taxes plus a fee of at least 20% to reclaim their property. If the homeowner does not reclaim the property after this time, then the county will issue them the remaining money collected after the taxes have been paid.
This is where the scam comes in at. The homeowner only has to fill out a 1 page form to reclaim their own money. It is easy and not complicated at all! They can call the county to get the form mailed to them or download the form which verify's they are the rightful recipient of the excess funds.
There are companies that call, send letters, and convince these homeowners to ASSIGN THEIR RIGHTS over to the company who promises to collect the balance on their behalf and pay them a portion!! Yes! These companies also push their webinars for hundreds of dollars to they can teach you to also be a scam artists!!!
Poor and elderly are the most injured by these tactics because they oftentimes are susceptible to sales tactics and pressure and some are not sophisticated enough to understand that they can ask the County for help in this matter and that one should NEVER Assign away their rights to any property they own without careful consideration of WHY they are doing it.
This is big business for some people and companies and it is only going to get worse. As a Realtor I have a code of Ethics.. but not every Realtor does. I will write another article on this very topic alone, but for now.. please never assign your right away on your property. Contact a trusted adviser to help you understand what your property is actually worth and to assist you in discovering the best option if you need to dispose of the property. Just because it needs repairs or may have some issues with title or probate, a trusted adviser can help you make the best decision for you and your family and ensure that YOU are the one that primarily profits from that decision.
You have nothing to lose. Realtors are paid at a closing unless they charge a retainer for their consulting services. But it is best to find out the highest and best use for your property and pay the commission. Is it really a deal if someone offers you $25 cash on your property and didn't tell you they are going to assign it to someone else for $125,000 and they will be making 100k? or if you are offered $5k for your property you lost in a Tax sale but you didn't know that 100k was paid for the property at the tax sale and you just lost $95,000?
We have to talk about these things and spread awareness in our community.. folks we are being robbed blind...
I am not an attorney but have been in this industry for over 20 years and unfortunately have seen not all of it .. but MOST of it! and I am happy to use my knowledge base to help people. There has to be a place you can turn to that puts Ethics above and beyond profit.
Let me know if I can help!
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