Better Business Bureau of Southern Arizona is warning consumers who are facing the threat of losing their homes to be wary of individuals and companies offering to “help” them out of their difficult financial situations.

Consumer advocates report an increase in complaints about foreclosure “rescue” scams. These scams specifically target homeowners who are in financial distress, and have flourished in the current economic climate.

Scam operators advertise over the Internet and in local publications, plaster posters on telephone poles and at bus stops, stick flyers in people’s front doors or contact people whose homes are listed in public foreclosure notices. Sometimes they direct their appeals to specific religious or ethnic groups.

In one scenario the scam operator offers to buy the homeowner’s property by paying off the amount that is overdue on the loan. He convinces the homeowner to move out and deed the property over to a third party. The homeowner is given the option of renting the property with the option to buy it back later.

After the homeowner moves out they typically find that the rent payment on the home is higher than they can afford. Often times, the original homeowner cannot make the rent payment and is evicted from their home.

The hapless homeowner can lose his equity and his home. Sometimes, the homeowner’s troubles go even deeper. In many cases the initial mortgage has not been paid off and the deed was never (more…)

A company that markets itself as a leader in the timeshare resale business and boasts relationships with some of the world’s most prestigious corporations, also claims a strange address in downtown St. Louis – the long-vacant and padlocked LaSalle Building at 509 Olive Street.

The company, Property Experts Marketing, appears to be among a group of bogus businesses that promise to sell vacation timeshares in return for advance fees, but then do nothing.

Better Business Bureau warns that Property Experts Marketing and similar enterprises are set up solely to steal money from unsuspecting consumers. Many use fabricated, or “ghost” addresses to make them appear more legitimate.

A Texas truck driver told BBB recently that he paid Property Experts Marketing $6,300 to market and sell a portion of his timeshare.  Despite repeated promises, the company has yet to sell the timeshare.
Kim States, BBB President, said unscrupulous businesses can take thousands of dollars from timeshare owners before they realize they have been duped.

“These are slick, sophisticated operators who go to great lengths to make themselves look legitimate to potential timeshare sellers,” States said.  “In this case, they went as far as faking an address in the heart of downtown St. Louis.  The only problem is that they chose a deserted office building with no electricity and no running water.”

Even after a BBB investigator told a representative of Property Experts Marketing that he had visited the locked and deserted office building earlier that day, the representative insisted that the company had a suite on the seventh floor of the building.  The man said he was speaking from a phone inside the Olive Street office.  Asked if he would be willing to meet a BBB representative at the building, the man replied, “well, actually I am leaving right now.”

The timeshare owner from Converse, Texas, said he was solicited by phone several weeks ago by a man representing himself as an agent with Property Experts Marketing.  The agent told him that he could sell a portion of his timeshare for $27,000.  All the company asked, the agent said, was that the owner pay (more…)

In a tough economy, struggling families look for ways to reduce their expenses. One popular option is to unload any timeshares so they can recoup their investment and stop paying maintenance fees. Many businesses specialize in reselling timeshares, but Better Business Bureau of Southern Arizona warns that some companies are using deceptive sales tactics to bilk thousands from already cash-strapped timeshare owners.

While timeshare owners are looking to unload the financial burden, unfortunately, not as many vacationers are buying. Timeshare sales dropped 40 percent in 2009, according to the American Resort Development Association. As a result, timeshare owners who are eager to sell are increasingly susceptible to offers that are too good to be true.

“Because of the economy, many timeshare owners want to cash out now but no one is buying,” said Kim States, BBB President. “Unfortunately, some unscrupulous timeshare resellers are taking advantage of the situation by misleading timeshare owners into paying thousands of dollars in the hopes of unloading their timeshare quickly.”

Companies like Resorts Condo Management, Creative Vacation Solutions, Platinum Property Exchange and Premier Timeshare Solutions have earned F ratings with BBB for convincing timeshare owners that they already have interested buyers but require thousands of dollars in upfront fees—such as closing costs—from the sellers and ultimately fail to complete the promised sale.

One woman from Tucson, who complained to BBB, said she was told by Creative Vacation Solutions (CVS) that the company had a buyer for her timeshare, but if the sale did not go through she would get her money back. The sale never did go through, and the consumer was never able to recoup the upfront fee, despite the guarantee from the company.

The same consumer tells BBB that after CVS failed to refund her money, she had similar experiences with several other timeshare resellers, despite paying several thousand dollars to the various companies.

BBB offers the following advice to timeshare owners who are looking for help in selling their timeshare:

Use a Business You can Trust – Make sure the timeshare reseller you use is a BBB Accredited Business or at the very least has a good rating with BBB. You can check out a business’s BBB Reliability Report at www.tucson.bbb.org.

Confirm Licensing Requirements – Some timeshare resellers will use fake addresses or PO boxes in order to mislead timeshare owners. Confirm where the company is located and in what states it does business. Ask if the company’s salespeople are licensed to sell real estate where your timeshare is located. If so, verify this with the state licensing board.

Get the Facts on the Figures – Find out if the business charges a commission. Do they handle the entire closing and provide escrow services? Do they charge an up-front listing or advertising fee? What does it cover and is it refundable?

Be Wary of Upfront Fees – Many complainants to BBB were burned by companies charging an advance “appraisal” fee for services or were told that they just had to pay closing costs and the timeshare would be taken off their hands. Consider opting for a company that offers to sell for a fee only after the timeshare is sold.

Don’t Fall for the Hard Sell or an Offer that Sounds Too Good to Be True – Don’t agree to anything over the phone but instead ask the salesperson to send you written materials; take the time to think it over and don’t be pressured.  Unscrupulous timeshare resellers may claim that your property is in demand and they can sell it immediately; unfortunately, these promises are often empty.

For more advice you can trust on how to stretch your dollar in a tough economy, visit www.tucson.bbb.org.