Department of Real Estate Issues Another Consumer & Industry Warning
Short Sale Specialist – Loan Modification Expert – Forensic loan auditors – Loss Mitigation Experts
The list goes on and on. Many of the same people that did sub-prime loans and loan modification services have moved into the latest scams as experts.
Just having the word specialist, certified, or expert in marketing and a business card does not make it so.
The DRE has noticed an increase in the use of questionable and possibly misleading terms such as “expert”, “certified”, and “specialist” in the marketing and advertising of assistance to anxious homeowners in connection with their home loans and foreclosure rescue services and short sales A growing number of individuals and companies, many of whom are unlicensed, purport to be “experts” in the area of short sales, “certified” forensic loan auditors, short sale “specialists”, loan modification “specialists”, loss mitigation “experts”, “fraud investigators”, and the like, and many of these designations and claims seem to be nothing more than marketing ploys by unscrupulous fraudsters to capitalize on the desperation and vulnerability of unsophisticated and/or financially strapped homeowners.
Sad but true, the real estate consumer needs to be extra careful in reaching out for help in today’s real estate market. Be both wary and cautious in selections that you make, many of these people are not experts and are just looking for quick money from desperate situations.
Here are some questions that you can do to protect yourself. The DRE states that the list is not exhaustive but will give you good information to make an informed decision.
- How many transactions or services of the type you are advertising have you successfully performed. Real estate agents should be able to give you MLS printouts of prior transactions.
- Do you have a list of your last 10 customers? Call them and do your own background check and remember that even if they are so-called satisfied customers the risk of a scam is not eliminated.
- Ask if they are licensed by the California Department of Real Estate. You can search for active real estate licenses here. If they are not licensed, what exemption from the licensing laws do they claim? Many are not licensed.
- What qualifies them as an expert? How did they get the expertise?
- For those that state they are a specialist, what qualifications do they have and what do they mean?
- If they say they are certified who has issued the certification? Do any government entities or recognized industry trade groups (Such as the California Association of REALTORS® or National Association of REALTORS® recognize the certification. If so you should verify the certification from the association.
- How much course work or study did it take to become certified or specialized?
- What were the requirements for certification or specialization?
- How many hours of coursework were involved?
- What professional organization gave them the designation or certification? Check out that entity with the California Secretary of State, Better Business Bureaus, California Association of REALTORS®, or National Association of REALTORS®. See if any complaints have been noted by doing a Google search.
- When did they get the designation?
- Did they take a examination, and is so when?
A search today on Google for “San Diego short sale specialist” resulted in 176,000 matches. Please be careful out there.
Read full DRE Consumer and Industry Warning.
Photo courtesy of Ludovic Bertron on Flickr
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