If you are a “distressed homeowner” you probably already know plenty of people with good intentions who are wanting to make a quick buck off of your situation.  Eachdistressed situation is like a thumbprint – it doesn’t have the same solution or resolution in the end.

So what does one do:  Loan Modification?  Short Sale?  Ride Out the Foreclosure Process Until a Sale Date?  Deed-in-Lieu of Foreclosure?

There are consequences to all of the above so the first steps that should be taken are NOT to contact someone who has something to sell.  The first steps would be to contact your attorney (be careful of the attorneys who offer these services) AND your CPA.  Receiving a 1099C  for hundreds of thousands of dollars of canceled debt is not a fun way to realize that you have consequences after you already performed an action!

There are laws on who can negotiate short sale and loan modification services and Steve Kitnik has written a very good article on Noggle Law PLLC’s blog on this topic to break it down for us.  (BTW, Robert Noggle, Esq is an excellent attorney to see if you are in this position!)

A distressed market does mean dollars to many loan modification specialists,short sale agents, attorneys and investors.  A good majority of them do well respected work.  A few may try take advantage of your rough situation.

If you feel like you have been taken advantage of here are some resources:

Loan Scam Online Complaint Form

Freddie Mac on Foreclosure Rescue & Loan Modification Scams

Freddie Mac on Mortgage Fraud

FBI Mortgage Fraud Task Force

Freddie Mac on Short Sale Fraud

The best thing you can do to avoid being ripped off in your distressed situation is do your due diligence first to find out what your lasting consequences may be.  Make sure you understand completely & can live with the end results.

Originally posted at www.lasvegas-realestate-communities-homesforsale.com/