When one examines the foreclosure market, all too often an area that is ignored is that of purchaser fraud. There are, as with any situation when large numbers of people are at risk, a number of nefarious individuals who get pleasure, as well as money, from preying on the unfortunate. In this case, those being preyed upon are the homeowners facing foreclosure. There are many ways for someone planning to take unfair advantage to do so, but many of the schemes involve the schemer offering to solve the homeowner's problem by new financing for the property or by taking title on a "purely temporary" basis in exchange for the schemer's supposed plan to "help" the homeowner. Unfortunately, "purely temporary" becomes 'permanently', and the only one helped is the slimy individual who just pocketed the ownership of the property.

If you are a property owner facing default or a possible foreclosure, remember a few things:
1.) If it seems to good to be true, it probably is.
2.) Some offers to buy may, in fact, be legitimate and fair--just enlist the aid of a Realtor to represent you and protect your interests.

For the legitimate investor reading this, there is nothing at all wrong with buying the property that may be at risk of being foreclosed upon. Just do it for a fair price relative to the market where the property is located. Also, before you proceed on this type of property, do your homework. Is the foreclosing mortgage the first or a subordinate loan? Which one it is can make a huge difference. Also, check with your Realtor and your attorney on the law on buying a defaulted or foreclosure-endangered property. A number of states are working on legislation to place limits on exactly what can be done by buyers trying to take what the state legislators perceive as unfair advantage of the homeowner in such circumstances. If such a law exists where you are, it may limit your options on buying such property or severely limit your desired upside for the investment.