Foreclosure is one of the worst things that can happen to a borrower. Knowing there are scammers waiting to feed on your desperation and vulnerability makes the situation even more frightening. Thousands have fallen victim to phony foreclosure counseling, phantom help, bait and switch, rent to buy, and bankruptcy foreclosure scams. Being able to know the telltale signs of a foreclosure rescue scam can save you the pain and suffering of becoming yet another victim.
What should you watch out for? Beware of any rescuer that guarantees or promises to save your house. You need to steer clear of any company that guarantees to end your foreclosure, tells you not to contact the lender, a attorney or credit and housing counselors, requires an up front fee before providing services, will only accept certified funds or wire transfers as payment, or instructs you to make your mortgage payment to them instead of your mortgage holder.
Bait and switch scam artists outright take your home by tricking you into signing papers that transfer the property deed or title to their company. Equity skimming scams steal the equity in your home while leaving you with your mortgage obligation. In the rent to buy scheme you are told to surrender the title of your home, but you will be able to remain in it as a renter. Although you have the option of buying it back, generally the terms are so outrageous it is impossible to do so. Avoid any company that instructs you to sign over the title or deed to your home.
Staying cool and not folding under pressure is the best thing you can do. Scam artists will often offer to fill out Papers for you. While you reckon they are giving a rescue mortgage for you, in reality, they are taking the money youve given them, filing a bankruptcy in your name and taking your house. Do not sign anything that you are unsure of or dont know, and never allow any company to fill out paperwork for you.
Knowing where to turn is your best defense. You should start by phoning your lender and trying to make a payment schedule. Additionally, the FTC offers free information that helps consumers recognize and avoid bent, deceptive and unfair business practices. If you feel you have been the prey or a foreclosure rescue con you can file a complaint at the FTC website.