With the increasing number of foreclosures in the US housing market, comes a rise in foreclosure rescue scams. It is hard to believe that people still take advantage of others in their time of need, just to make money. These people are truly scumbags and need to be stopped. If you are facing foreclosure, you may want to read on to learn about the sign of a possible scam and what to watch out for when trying to stop foreclosure.
Below are the warning signs of a Foreclosure Rescue Scam, if you are working with a person or company that exhibits any of the following, you may want to think twice and look for someone else to work with.
-The person asks you to pay their company your mortgage payment and then they will forward that to you lender on your behalf. (This makes no sense, cut out the middleman and send the mortgage payment to the lender yourself.)
-The “rescue” company asks that you give them your deed, or transfer the title to them and they will help get you out of foreclosure.
-You receive a door-to-door solicitation or some piece of marketing service that will buy your home and that mentions foreclosure. Some of these people are legit, but most of them are not, it usually is wasting precious time to work with one of these companies. When there are more legit companies out there that can help you.
-The company request you give them a fee to provide you will services, especially if they ask for a fee up front. It is okay to pay a company after the do the services that they promise to provide to you.
-If you are offered a contract to sign with a foreclosure rescue company, take it to an attorney and get it reviewed. Don’t sign any paper work, with out another expert not affiliated with the company you are working with, takes a look at it.
-If you do sign a form of sales contract make sure that it releases you from any liability of the mortgage that you have on the property. Which means to make sure that your mortgage is paid off and that you no longer owe money on your mortgage.
-Never sign any blank pages, you never know what the foreclosure rescue company could add to the page at a later date and make sure you get copies of everything you sign.
-If you do not speak English have a translator help you and that you can trust.
Below are common promises some companies will make to you and you should take a step back and see if they can really fulfill these promises or if they are just trying to scam you out of money.
1. We’ll cover you first couple of rent payments on your apartment.
2. We will make sure you get money back at settlement that you can use any way you want.
3. We will buy you home “as is.”
4. A guarantee to find a buyer for you home 10-14 days.
5. We will save your credit or help you reestablish your credit.
6. We will help you find new financing with lower payments and interest rates.
Not everyone you meet is trying to scam you and sometimes they will fulfill the promises above, but keep in mind if you are getting an offer that sounds to good to be true, it probably is. Also always stay in contact with you lender and possibly a foreclosure attorney. This way you can run things buy them and see if they sound legit. Also if you working with a company do some online research and see what other people have to say about them.
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