Mortgage Monday: Avoiding Foreclosure Fraud

Avoiding Foreclosure Fraud.

Although the rate of home foreclosures is slowing, that does not mean the rate of foreclosure fraud has slowed. If you receive a flier from a company stating that they can stop your foreclosure or get a you a needed loan modification. Read it carefully and if it falls under the old adage, “if it seems too good to be true, it probably is”, throw the flier away.

Companies saying that they can “stop your foreclosure”, or get you a loan modification “for a fee” seem to want to help you. They want to help you out of your money. They collect the fee up front and do not do what they say they are going to do to assist you. Usually the home owner winds up in a worse situation then before, and several dollars lighter in their checking account.

The most common scam is the fraudster will tell that they can stop your foreclosure. They ask you to stop all contact with your lender, financial adviser, and your lawyer. They then ask you to send them your mortgage payment and they will take care of everything. By the time you find out that they are not doing what they said they will, you are facing foreclosure and have lost a lot of money.

Another scam that has appeared in the housing market is called “Rent to Own”. The scammer gets you to sign over your title to them to stop the foreclosure process and will rent the home to you. You will be able to buy the home back at a later date and everything will be fine. Unfortunately the cost of buying your home back will be too high for you to afford. Another way for this scam to end is the scammers evicts you from their home. Either way you are without your home and several thousands of dollars.

Remember; If it is too good to be true, it probably is!

 

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