With this type of scam, the scam artist asks you to transfer the title to your home over to him/her to help you prevent foreclosure.
With all the sincerity the scammer can muster up, he/she would have you believe that they are able to obtain new and better financing…and they would allow you to remain in the home as a renter…and eventually buy it back at some point.
They may actually be able to obtain better financing.
But, if you do not comply with the terms of their rent-to-buy contractual agreement, you can lose your money…and face eviction.
The agreement may be very challenging to comply with. You might, for instance, be required to pay high up-front fees…and monthly payments that you might not be able to afford.
The scammer generally has no intention of ever selling your home back to you. All they care about is your home…and your money.
This might not be obvious, but transferring your title to the scammer does not change your payment obligations. You will still owe your mortgage debt.
It may seem hard to believe, but the difference will be that you will no longer own your home.
If payments are not made on your mortgage, your lender still has the right to foreclose.
And, if that was not bad enough, the foreclosure hit will appear on your credit report…and stay there for 10 years.
As always, check with your attorney, CPA, etc.