Together with a rise in the number of foreclosures all across the U.S. is an increase in the number of scams. The scams are presented in the form of companies who are supposedly coming to the rescue of homeowners faced with foreclosure. But instead, what happens in foreclosure rescue scams is your money gets stolen, your credit gets destroyed and the equity in your house gets wiped out.
Foreclosure scam victimize people who fall behind on their mortgage payments and as a result are faced with foreclosure. It’s easy for these con artists to find their victims because mortgage holders have to publish notices before they are able to foreclose on a home.
When a vulnerable person has been identified, the rescue company contacts the homeowner by email, phone or they may make a personal visit. Even if they have a business card or call themselves a mortgage consultant or a foreclosure rescue agent, you don’t have to believe they are legitimate. It doesn’t take proof to be able to advertise in the newspaper or have a site on the internet.
Be cautious of any company that wants to negotiate with your lender on your behalf for a fee. Protect yourself by taking the time to check out their reputation and verify their credentials. Contact the Better Business Bureau to see if there is any information about them.
If you are dealing with a probable foreclosure then you know that you don’t need any more problems. And you can be sure there will be problems if you allow yourself to get scammed. For that reason alone, be very skeptical whenever anyone offers to represent you for a fee.
You could deal with the situation yourself. The first thing you should do to put a stop to or at least delay foreclosure is to get in touch with your lender. Find out for yourself if anything can be done. Why should you spend money for someone else to do that for you? A far better use for extra money would be to pay down part of your arrears or maybe hire a lawyer.
If you do make a decision to go ahead and deal with a third party, here are several things you should be aware of so you can avoid problems.
It is very important to always get things in writing. Be sure that you get copies of all agreements. A written document will protect your rights; a verbal promise won’t and it can’t be used in a court of law.
Don’t let yourself get rushed into signing anything whether it’s contracts or other paperwork. You probably will have a sense of urgency to start resolving your problem. But always read every document thoroughly before you sign. And you need to understand exactly what you are signing.
And don’t sign a document if it doesn’t make sense. Bring it to your financial adviser or to an attorney for advice and explanation. You should be aware that there are a few things you probably should never sign.
Be sure that you do not sign over the deed to your home. If you do, you legally lose all rights to your house and you also lose out on any equity you have built up. Never sign any documents that have blank spaces. Blank spaces could be filled in with anything after you’ve signed. Don’t give someone else that kind of power. If you do find mistakes on a document, don’t sign until all errors are corrected.
It’s not a good idea to trust a foreclosure rescue company to make the payments on your mortgage for you. It just makes more sense to make the payments yourself directly to the lender.
When you do that, your mortgage holder can see for themselves that you’re at least attempting to make your payments. And even more important, you’ll know that all the money you are paying will be going towards your mortgage. There won’t be any fees paid out first to the rescue company.
Just remember the adage. When something sounds too good to possibly be true, there’s probably something wrong. If you follow the steps we outlined, you can avoid becoming victimized by foreclosure rescue scams.
If you are facing foreclosure, you probably will need help. Don’t fall victim to a foreclosure scam. Get free foreclosure information at http://www.getforeclosurefacts.com and find out how to avoid foreclosure scams.