Foreclosure Help

Recognize Foreclosure Scams

When you first purchased your home is not likely that she thought about the possibility of losing your home to foreclosure. The reality is the potential and possibility of losing your home can be a traumatic experience. Sadly millions of Americans are facing losing their homes through foreclosure every year. As horrifying as that experience is there are many foreclosure scam specialists that are taking advantage of homeowners and the foreclosure process. To be fair, there are many foreclosure assistance companies that can offer help.

Unfortunately there is a like number of so-called foreclosure experts that are intent only on capitalizing on someone else’s misfortune. Homeowners that are in a foreclosure process are vulnerable and usually desperate. Factor that in with unscrupulous foreclosure scam artist that are willing to do or say anything that will present hope and opportunity and a recipe for a scam is present.

The motives and goals for foreclosure scam artist are very simple. Their goal is to make as much profit as possible through fees they may charge, or mortgage payments they may collect from you. They may tell the homeowner that they will pass on this money to the lender, but never do. In some cases the foreclosure scam artists may assume ownership of the property, by deceiving you, and absconding with the equity you have in your home. Before you know it you have lost your home to foreclosure.

Recognizing which firms and corporations are legitimate foreclosure help and which ones are scam artists can be a challenge and of itself. If your home is in the foreclosure process you will notice that your mailbox will be full of offers from foreclosure specialists that promise you they can do anything from saving your house from foreclosure to delaying the foreclosure. The Federal Trade Commission, is the foremost consumer protection agency for the United States and can help you identify who is legitimate and who is not. The FTC and its law enforcement officials want you to know that legitimate options are available to help you save your home. Do not hesitate to contact them.The is government foreclosure help available.

Here is how foreclosure scams usually works. The foreclosure helper tells you that he will negotiate a deal with your lender to save your house if you pay a fee first. You will be told not to contact your lender, lawyer, or credit counselor, and to let the scam artist handle all the details. Once you pay the fee, the scam artist takes off together with your money. Sometimes, the scam artist insists that you make all mortgage payments on to him while he negotiates with the lender. During this instance, the scammer may collect some months of payments before disappearing. You’re thinking that you’re signing documents for a new loan to make Your existing mortgage current. This can be a trick. You have literally signed documents that relinquish the title of your house to the scam artist instead of a foreclosure help loan.

You are told to give up the title as part of a deal that enables you to remain in your home as a renter, and to buy it back throughout the following few years. You will be told that conceding the title can permit a borrower with a higher credit rating to secure new financing – and forestall the loss of the home. But the terms of those deals sometimes are therefore burdensome that buying back your home becomes impossible. You lose the home, and also the scam artist walks off with all or most of your home’s equity. Worse nevertheless, when the new borrower defaults on the loan, you’re evicted. In a very variation, the scam artist raises the rent over time to the point that the previous homeowner cannot afford it. After missing several rent payments, the renter – the previous house owner – is evicted, leaving the “foreclosure helper” free to sell the house.

Recently a Florida man was contacted by a person representing themselves as foreclosure experts. In other words, he was a foreclosure attorney. A man’s home was in the foreclosure process and that information was gleaned from public records. The very first question the man was asked by the firm was,” do you have a minimum of $5000 to put down for a new loan?” The man politely answered no, and the person hung up the phone. While that may or may have not been a scam artist at work, asking for money at the outset should usually set off a warning bell to anyone in foreclosure distress.

Another situation goes as follows. The foreclosure scam artist offers to locate a buyer for your home, but only if you transfer over the deed and move out. The foreclosure scam artist agrees to pay from the profits when the home sells. Once you transfer the deed, the foreclosure scam artist simply rents out the home and pockets the proceeds while your lender proceeds with the foreclosure. Foreclosures in today’s economy can sometimes take many months or years. At the end of the day, you lose your home , and you’re still responsible for the unpaid mortgage.

There are seemingly many ways for foreclosure scam artists to operate and many are able to stay a step ahead of the law. One of the best ways to deal with the foreclosure help for keeping your home is to deal with the lender yourself and act on your own behalf.