Foreclosure Info - Tips For Avoiding Foreclosure Scams

reclosures are on the rise, so are the scams thatrefinance your loan to a lower payment. They
commit to “rescuing” themake you believe you are signing the documents
homeowner from losing their home to foreclosure.for a new loan when in actuality you are signing
These scams just steal your hard earned money,over the ownership of your home. This opens
destroy your credit record and eliminate anyyou up to the situation as above.
equity you might have in your home.Bankruptcy Schemes – Several scams try
These foreclosure con artists use people who areto abuse the bankruptcy laws. These are
dire financial straits. They know these people arecomplicated schemes, so it is important to always
desperate and are grasping at straws forthoroughly investigate anyone offering to help you
answers to their foreclosure situation. People towith your bankruptcy. Anytime someone wants
target for these scams are not hard to seek outyou to sign over ownership of your home, be
as mortgage lenders publish notices beforevery cautious.
foreclosing on homes. These con artists readHOW TO PROTECT YOURSELF FROM SCAMS
these notices then contact their victims quiteAlways know what you are signing – It is
often even in person but more commonly byimportant that you thoroughly read and
mail, phone or by email. They even go so far asunderstand what you are signing. Obtain advice if
to advertise their services on web sites. Theya document is too complex. Do not sign anything
make themselves sound official by giving themwith blank spaces, errors or incorrect information
impressive titles like “foreclosureeven if someone promises to fix things later.
consultant” or “mortgageGet everything in writing - Verbal agreements are
consultant.” They may call their servicesusually not legally binding. It is important that you
“foreclosure service orget any promises or agreements in writing to
“foreclosure rescue agency.”protect yourself. Be sure to keep copies of
If you are facing foreclosure, contact youranything you sign.
mortgage lender or any legitimate financialMake your mortgage payments directly to your
counselor to help you find legitimate options tolender or the mortgage servicer - Do not trust
avoid foreclosure. It is imperative that youanyone else to make mortgage payments for
carefully check the credentials, reputation andyou.
experience of anyone offering to arrange to stopBe cautious about signing over your deed
or delay your foreclosure for a fee. The following– Scams quite often require you to sign
recommendations can help protect you:over your deed. Always get the advice of a
WATCH OUT FOR THESE FORECLOSURElawyer or financial advisor before doing so. You do
RESCUE SCAMSnot want to lose your rights to your residence
Lease-Back or Repurchase Scams –and any equity that you may have.
Someone offers to pay off your mortgage andReport any suspicious activity to the Federal
rent you residence back to you. This usuallyTrade Commission and to your state and local
involved signing over the deed of your home toconsumer protection agencies – This helps
the individual. This will give the person the ability toto prevent others from becoming victims.
evict you, raise the rent, sell the house or stealHOW DO I FIND LEGITIMATE HELP FOR YOUR
your equity. You are still responsible for theFINANCIAL PROBLEMS
mortgage so if the individual doesn’t makeContact your lender as soon as you think you are
the payment, your house still gets foreclosed onunable to make your mortgage payment.
and you face the legal consequences.Contact a legitimate housing or financial counselor
Refinance Fraud – Someone acts as ato help you work through your financial problems.
mortgage broker or lender and offers to