The Pre Foreclosure Sale (PFS) is for homeowners that are in a situation where currently they do not see a way to stop the foreclosure; mainly because of financial difficulties. However, understanding the Program within the time allowed to stop the foreclosure can be confusing to a homeowner especially when the homeowner did NOT get any housing counseling prior to posting foreclosure.

For example:

John Smith’s home is posted for foreclosure throughout the county. Every investor, stop foreclosure services and housing counselors are trying to solicit in assisting the Smith’s family. In most cases, the investors have the most to gain financially in convincing the Smith’s family to participate in what John Smith thinks is a pre-foreclosure sale.

The investor tells Mr. Smith that he will purchase the property on a short sale and allow the Smith’s family to rent the property for a certain period and in return they will sale the property back to the homeowner at a later day. It does NOT take much effort to convince a homeowner that is several months in default that he can NOT afford his property and if the Smith’s family does NOT comply with this arrangement the house will foreclose.

The most disturbing part about individuals tricking with the PFS (Pre-Foreclosure Sale) Program for financial gain is that there is NO public awareness about what is considered a scam. In addition, the Federal Bureau of Investigation (FBI) has NOT got around those violators.

A Mortgage Company that is authorized to receive incentive pay from the US Department and Urban Development (HUD) to perform Retention Options in respect to Loss Mitigation can sometime become prejudice in performing a PFS Workout for a homeowner if the homeowner has already performed one or two Retention Options. They sometimes made sure that the homeowner is NOT allowed to save or stop the foreclosure with the PFS Program.

In light of the PFS Program Foreclosure’s Attorneys will proceed with foreclosing a homeowner’s properties without considering the PFS or Deed-in-Lieu Program. Sometimes I wonder if all of these so call “entities” are working hand and hand.

Homeowners must pay close attention to their Retention Options within the scope of stopping their foreclosure and realize that it is virtually impossible to loose your home or to be evicted if Federal Guidelines are met in a timely manner.

Billions of dollars are made on these so call “short sales” every month. It is so easy like stealing candy from a baby. But there is one problem for those that are involved in these practices; the United Sates of America is NOT a fool.

If you are a foreclosure attorney, investor, or a foreclosure cover up to buy short sales, when these scams unfold, no matter what, those who think they have tricked the government policy, JUST WAIT!