If you’re facing foreclosure, you may be ready to try anything to save your home. While this is only natural, it’s important to not let desperation get in the way. Homeowners who do often find themselves victims of a foreclosure scam. Although foreclosure scams come in several forms, many are easy to spot. The best way to protect yourself is to know what to look for.
The first kind of scam to be aware of is an individual or company approaching you to offer a loan. While it may seem attractive on the surface if you’re not careful the documents you sign may turn your home ownership over to the individual or company in question— leaving you in a high rate rental agreement. When you stop being able to afford those payments you will be evicted from a home that you no longer own.
The second foreclosure scam involves an individual or company offering to negotiate with your lender on your behalf without documentation or records. During this period, you are asked to pay the individual or company in question, who may be referred to as a rescuer. The only problem is that the individual or company isn’t in contact with your mortgage lender at all. Instead, after introducing you they end up pocketing your money and you’re still left facing foreclosure.
The third scam is one that involves strong-arming your home from you. In this case, the individual or company in question isn’t necessarily after your money— rather your property. They will instruct you not to contact anyone else for help, not to speak with a lawyer, and not to talk to or make payments to your mortgage company. Then right before the foreclosure proceedings, the scammer will take every step possible to get your home.
These three examples of foreclosure scams are just a few that you may run into, but they have the potential to cause the most damage and heartbreak. The good news is that you are now prepared and can avoid falling victim to these types of scams. A word to the wise: never agree to do business with someone who approaches you first. No one who comes knocking on your doorstep is likely to have your best interests at heart. A reputable lawyer or housing advisor will wait for you to come to them.
Desperation and despair can cloud your judgment. If you are presented with a contract or legal document to sign, don’t do so until you can have it reviewed by an attorney that you chose yourself. Don’t rely on the advice of just any attorney suggested to you, as they may be in on the scam. When it comes to foreclosure scams, it would be a mistake to believe that the individual in front of you is different. Instead, legally avoid foreclosure by speaking with a trusted attorney or making arrangements with your financial lender.
