The Benefactor Scam

You are falling behind in your payments, a Notice of Default was just filed.
Suddenly you get a piece of mail, or a phone call, or even a knock on the door.
It's a nice looking person who says they can help you.
They offer to have a benefactor, someone with great credit, do you a favor and refinance the home and catch you up.
To do this they'll have to put the house in her name.

You sign a quit claim deed transferring the title into her name.
They tell you not to discuss this with anyone as the nice helper wants to keep a low profile.
They make it easy for you by bringing a mobile notary to your home.
You think everything is going just fine.

Then the eviction notice comes, or the for sale sign goes up.
There's been a change in plans.
Your nice benefactor has changed her mind and needs to sell - quickly.

The problem is that she is selling your home, and keeping the equity for herself (and her partner).
At the time of sale, your loan may be paid off - maybe.
In either case you are out on the street with nothing. No equity, no home.

Sometimes this is just the first part of the twist.
Your home may be quietly sold over and over again, without your ever knowing it.
Each time the value is bumped higher and higher.
Each new buyer is a strawbuyer. The original benefactor could have been a strawbuyer for all you now.
At a certain point, the house of cards collapses and the only thing that is left is an overvalued vacant house.
The equity, and the inflated equity have disappeared along with the Real Estate Investors.

Rule Number One: NEVER sign your Deed of Trust over to anyone!

Read "The We Pay Cash For Houses" Scam.