In the United States, a Sheriff’s sale is the last step in a foreclosure process.
It is an auction held to liquidate a property on which a mortgage borrower has defaulted-- it allows banks to recover money lost when a mortgage borrower defaults on a loan.
Crooks create companies with the claim that they will assist former owners of properties sold at Sheriff’s sales, promising victims they will help them recover their properties or the proceeds from the auction.
Not only do the scammers charge former owners an up-front fee giving nothing in return, but they ask for driver license photocopies and personal info as well.
It was reported that fraudsters altered the driver licenses and submitted them to title companies with fake Power of Attorney docs, in order to steal Sheriff’s sale proceeds due to other former property owners.
How to avoid: don’t fall for such a thing. Once your property is sold through a Sheriff’s sale, it’s gone. Start thinking of getting something else.