houserefinancecenter.com Blog

Avoid foreclosure rescue scams

July 10th, 2010

No one can prevent a foreclosure except the lender and the loan servicer. There are thousands of scam artists that will tell you otherwise. They promise to save your house but they ask for a fee upfront. This should be a big red flag.

Mortgage delinquencies are at an all-time high. Homeowners are scared, frustrated and desperate. They are grabbing at straws. And this makes them easy prey for fraudsters.

If you are a homeowner facing foreclosure, you need to protect yourself. Do not compound the situation by dealing with a fraud artist. Follow these steps.

1. Do not give your mortgage payment to anyone other than the lender or the loan servicer. Many fraudsters will ask you to make your payments to them. Never, ever fall for this ploy.

2. Do not give a fee in advance. This is a sign that the scam artist is looking to make a quick buck and disappear. Now don’t get me wrong, there are honest professional negotiators in the market. They will never ask for money upfront.

3. Do not believe it when the fraudster says that he can give you a guarantee that your house will be saved.

4. Do not sign over the title to your house to anyone. Some scam artists will suggest that you sign over the title then you can rent the house. This somehow protects it from the bank. This is a big lie.

5. Do not be pressured into signing any documents. Ask to take the papers home to look over, or to take them to your lawyer.

Your first step is to get expert advice. Many community groups, including NeighborWorks, offer free help.

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Entry Filed under: foreclosure