How To Steer Clear Of Foreclosure Scams And Scumbags

By Author: Nick Adama
Total Articles: 197
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With the increasing number of foreclosures in the US housing market, comes a rise in refinance 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 dirty scammers and need to be put in jail.  If you fear losing your home, you may want to read on to learn about the signs of a possible scam and what to look 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 twice and look for another company to work with.

-The associate asks you to pay their company your mortgage payment and then they will forward that to your bank on your behalf.  (This makes no sense, just send the mortgage payment to the bank 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 purchase 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 dwindling away precious time by working with one of these individuals.

-The company request you give them a fee before they will help with their services, especially if they ask for a feeat the start.  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 professionally evaluated and you feel comfortable with the individual.

-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, without another attorney 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 after you leave 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 individuals 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 pledge to find a buyer for you home 10-14 days.

5.    We will save your credit or help you put in place 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 great to be true, it most likely is. 

Another important thing to remember is to always stay in contact with your bank and possibly a foreclosure attorney.  This way you can run things by them and see if they are 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 taken advantage of, that's not a good reason to be afraid and do nothing. You need to find help and you need to do it fast. So do your research and find a mitigation company that you feel comfortable working with. Don't just sit back and wait for a government bailout or your bank to turn you down at the last minute!
Nick publishes articles on the ForeclosureFish website to provide foreclosure help and information to property owners in need of assistance. The site describes numerous methods to save a home, including deed in lieu, filing bankruptcy, short sales, defending foreclosure in court, and others. Visit the site for an e-book explaining the basics of foreclosure and how to stop the process: http://www.foreclosurefish.com/