The Legislature finds and declares that homeowners whose residences are in foreclosure are subject to fraud, deception, harassment, and unfair dealing ... from the time a Notice of Default is recorded ... until the time of the foreclosure sale. These Investors represent that they can assist homeowners who have defaulted on obligations secured by their residences. These Investors, however, often charge high fees, the payment of which is often secured by a deed of trust on the residence to be saved, and perform no service or essentially a worthless service. Homeowners, relying on the Investors' promises of help, take no other action, are diverted from lawful businesses which could render beneficial services, and often lose their homes, sometimes to the Investor who purchase homes at a fraction of their value before the sale. The Legislature further finds and declares that these Investors have a significant impact on the economy of the state and on the welfare of its citizens.

• If you're in foreclosure, any contract you sign in California must have a "5 Day Right of Cancellation" and back dating is illegal. However, 5 days is also 5 days that you lose if you don't give yourself enough time prior to a sale. This is a double edged sword.
• Signing a Deed over to an investor relieves you of Title to the property, but does not relieve you of the debt. Make sure that this is a good option for you and potentially seek legal help if you're unsure what you are signing.
• Ask how long the investor has been in business and how many properties they have bought and sold. There are many brand new investors that have bad credit and/or no money and still represent they have a service or solution to offer - and they might, but be careful.
• Is the investor knowledgeable about the laws and is he/she forthcoming on the positives and negatives of each option provided to you. If not, beware!