How To Stay Away From Foreclosure Scams And Losing Your Hard Earned Money

With the rising number of foreclosures in the United States 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 hardship need, just to make extra cash.  These people are rotten scumbags and need to be taken down.  If you fear losing your home, you may want to read on to learn about the signs of a possible scam and what to watch out for when trying to avoid 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 again and look for another company to work with.

-The individual asks you to pay their company your mortgage payment and then they will forward that to your mortgage holder on your behalf.  (This makes no sense, just send the mortgage payment to the mortgage holder 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 out of foreclosure.  Some of these people are legit, but most of them are not, it's usually just a waste of time for you to contact these companies. They will offer to help by paying you far less than your home is worth, if you're lucky. Others are just equity fishing scams. If you have equity, they will trick you into signing your home over to them. You'll just be wasting away precious time by working with one of these companies.

-The company require that you give them a fee before they will help with their services, especially if they ask for a feeup front.  It is okay to pay a company after they do the services that they promise to provide to you. If you do pay up front, it should be guaranteed and the fee should be held in an escrow account until the services are complete. But you should never pay anything until after your case has been thoroughly evaluated and you feel comfortable with the company.

-If you are offered a contract to sign with a foreclosure rescue company, take it to an attorney and get it analyzed.  Don’t sign any paper work, without another lawyer not affiliated with the company you are working with, taking a look at it.

-If you do sign an agreement to sell your home, make sure that it releases you from any liability of the mortgage on the property, including any deficiency judgments. You need to make sure that your mortgage is paid off and that you no longer owe money on your mortgage or to any of your lenders. Many people agree to a sale to avoid costly deficiency judgments, but end up with the debt anyway.

-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 one that you can trust.

Below are average 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 several month of rent payments on your apartment.

2.    We will make sure you get money back at settlement.

3.    We will buy your home “as is.”

4.    A promise to find a buyer for you home 10-14 days.

5.    We will save your credit score or help you reorganize your credit.

6.    We will help you find new financing with lower payments and interest rates.

Not everyone you meet is trying to take you and sometimes they will fulfill the commitments above, but keep in mind if you are getting an offer that sounds to spectacular to be true, it likely is. 

Another important thing to remember is to always stay in contact with your mortgage holder and possibly a foreclosure attorney.  This way you can run things by them and see if they actually sound legit.  Also if you are working with a mitigation company, do some online research and see what other people have to say about them.

Even though you may be worried about getting screwed, that's not a good enough reason to sit back and waste time. You need to find help and you need to do it now. So do your research and find a foreclosure help company that you are happy working with. Don't just sit back and wait for a government bailout or your lender to turn you down at the last minute!

Nick writes for the ForeclosureFish website, which gives homeowners the information and resources they need to avoid foreclosure on their own and defend themselves against the bank's lawsuit. The site describes numerous methods to save a home, including foreclosure loans, deed in lieu, loan modification, stopping a trustee auction, bankruptcy, and more. Visit the site on the web to read more about how you can avoid losing your house, repair your credit, and establish a long term financial plan once a financial crisis is over: www.foreclosurefish.net/

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