San Bernardino, Calif. (VVNG.com) — Officials in San Bernardino County are warning residents of a nationwide property scam duping homeowners into assigning a lien on their property in exchange for an upfront cash payment in a scam known as the Homeowner Benefit Program.
According to a news release, a Florida-based real estate company operating a nationwide network offers homeowners up to $5,000 cash in return for the homeowner signing a Homeowner Benefit Agreement.
The agreement gives the company the exclusive right to serve as the listing agent, receiving a 3% commission when the homeowner decides to sell their home. When the agreement is signed, the company files a memorandum lien with the county Recorder’s office.
The catch is that it is a 40-year agreement attached to the property.
If a homeowner dies or gifts the property to another, the heir or new owner is obligated to the terms of the contract. If the homeowner wishes to cancel the agreement or avoid listing their property with the real estate company, they must pay an early termination fee equal to 3% of their home’s value (the amount the company would have received upon the sale of the property).
Unfortunately, this arrangement is perfectly legal.
“A couple thousand dollars may seem like a lot of money to someone in financial need, but what they don’t realize is that the median listing price of homes in San Bernardino County was nearly a half-million dollars in…
