Protect Your Home from Foreclosure Rescue Scams
Sadly, the recession has become a breeding ground for scammers.
Now people not only have to protect themselves from identity theft scammers, they must also be aware of the foreclosure scams.
Foreclosure rescue scammers prey on distressed homeowners and claim they can stop foreclosure in its tracks.
The Skinny on the Scam
Foreclosure rescue scammers target homeowners who are behind on mortgage payments and swoop in with an offer to “help them pay their mortgage” and “save their homes”.
The real deal is that they use the property and homeowner to turn a profit and then abandon the property to foreclosure when there's no more money to be made.
Foreclosure rescue scammers find their victims through public foreclosure notices and make contact.
Promises, Promises
They generally use the lure of quick cash and a "fresh start" to draw desperate homeowners into the scam. Homeowners are often promised that they will be able to keep their homes and repair credit scores.
Those who take the bait are then generally told that the foreclosure rescue staff will take care of all the details and they should not speak with a bankruptcy lawyer or communicate with their mortgage company or credit counselors.
People who take the advice of the scammers are then isolated from any real foreclosure solutions.
Don’t Sign Over Ownership!
The typical foreclosure scam involves the homeowner signing ownership of the home over to the scammer.
Foreclosure rescue scammers also usually charge homeowners an upfront fee for their "services" and claim they will negotiate directly with the mortgage company on behalf of the homeowner.
During the negotiations, the homeowner is told to make mortgage payments directly to the scammer.
Homeowners are deceived into thinking home ownership will be transferred back to them at some time in the future; however, foreclosure rescue scammers have a different plan.
In reality, there are no negotiations, and by the time the homeowner realizes they have been duped, the scammer is long gone.
In many cases, no payments are ever made on the mortgage and the home is lost in foreclosure.
Other scenarios include the foreclosure rescue scammer evicting the homeowner from the property after they are financially drained and reselling the home.
The Bankruptcy Option
Some homeowners may not be aware that filing Chapter 13 bankruptcy results in an automatic stay that can stop foreclosure in most circumstances.
If you’re facing foreclosure, it’s a good idea to talk to with a bankruptcy lawyer to learn about your options to saving your home.
It’s also a good idea to learn more about Chapter 13 bankruptcy foreclosure.