Foreclosure Scams You Want To Avoid

By Adam Whazzer | December 29, 2009

Foreclosure is one of the worst things that can happen to a homeowner. Knowing there are criminals waiting to feed on your desperation and vulnerability makes the situation even more worrisome. Hundreds have fallen prey to phony foreclosure counseling, phantom help, bait and switch, rent to buy, and bankruptcy foreclosure scams. Being able to see the telltale signs of a foreclosure rescue scam can save you the pain and suffering of becoming yet another victim.

What should you look out for? Beware of any rescuer that guarantees or promises to save your home. You need to avoid any company that guarantees to stop 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 con artists outright steal your home by scamming 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 house.

Staying calm and not folding under pressure is the best thing you can do. Con artists will often offer to fill out paperwork for you. While you think they are giving a rescue mortgage for you, in reality, they are taking the cash youve given them, filing a bankruptcy in your name and stealing your home. Do not sign anything that you are unsure of or dont understand, and never allow any company to fill out forms for you.

Knowing where to turn is your best defense. You should start by phoning your lender and trying to negotiate a payment plan. Also, the FTC offers free information that helps consumers recognize and avoid fraudulent, 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.

Adam Whazzer has been a mortgage guru for years” Adam has offered End Foreclosure and US Mortgage Bailout nc to foreclosure victims for nearly 5 years. If you are facing foreclosure, stop by for More Info On this Subject

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