(12 votes)

Recovering Sheriff’s Sales

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How the scam works:

In the United States, a Sheriff’s sale is the last step in a foreclosure process.

It is an auction held to liquidate a property on which a mortgage borrower has defaulted-- it allows banks to recover money lost when a mortgage borrower defaults on a loan.

Crooks create companies with the claim that they will assist former owners of properties sold at Sheriff’s sales, promising victims they will help them recover their properties or the proceeds from the auction. There are some legitimate companies that provide these services, but it's a matter of separating the real ones from the fake ones.

Not only do the scammers charge former owners an up-front fee, providing nothing in return, but they ask for driver license photocopies and personal info as well.

It has been reported that fraudsters alter the driver licenses and submit them to title companies with fake Power of Attorney documents, in order to steal Sheriff’s sale proceeds due to other former property owners.

How to avoid:

Don’t fall for such a thing. Never pay any fees up front.

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There are 1 Comment

  • On Sunday, October 07, 2012, Lee V. wrote:

    If you really want to help the public, You should not spread misinformation. While is true that crooks used the methods you described above (you created this article based on a real Philly case-Rashid et al.)to impersonate beneficiaries, the important point is that there are huge amounts of money as surplus proceeds from sheriff foreclosure sales, all across the country.
    Yes, your house might be gone, however, you should tell your readers that before they start "getting something else" to check to see if there are, and also claim, surplus sale proceeds from the house they just lost.
    Not all the companies who help people claim unclaimed moneys are crooks. And there is nothing illegal in doing so. Without these companies, most people will never find out they have unclaimed money. The best way to protect yourself -and weed out the crooks from the good guys-is to never pay any money upfront.
    Why don't you tell your readers that most states, and county governments have short deadlines of 1,2,or 3 years for beneficiaries to claim their surplus money from the sale of the foreclosed home. After the deadline, the money goes into general fund and cannot be claimed, ever.
    So who is the biggest crook and thief here?
    Please get educated on the subject before you spread lies and misinformation online, otherwise you can do more damage than the crook in your story.

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