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How To Avoid Foreclosure Rescue Scams
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How To Spot Foreclosure Rescue Scams






It's hard to believe that people are preying on homeowners who are desperate to hold onto their
homes. These fraudsters are only interested in a quick profit through fees and mortgage payments
they collect from homeowners but do not pay to the lender. Legitimate options are available to save
your home if you are facing foreclosure.

There are many companies touting rescue programs. Some are legitimate, others are not. Before you
give any money to a company, here is what to look for to avoid getting separated from your cash.

  • If a rescue professional tells you not to contact your lender, lawyer or credit counselor, this is a
    red flag.

  • A company that collects a fee up front before doing any work; this is highly unethical, and should
    raise concerns.

  • If a program involves you signing over the title of your house, and then ask you to remain in the
    house as a renter, walk away. The program might also say that you can buy back the house. The
    reality here is that your rent money ends up in the scammer's pocket; no mortgage payments are
    made; and additional equity is stripped from the house.

  • If you are asked to make mortgage payments directly to the rescue firm; this is another red flag.

  • If you are pressured to sign paperwork before you had a chance to read the details.

  • If you are asked to pay only by cashier's check or wire transfer.

  • Any guarantee to stop foreclosure. Many rescue companies promise to negotiate on your behalf
    with the lender. No-one can guarantee to stop a foreclosure. There are HUD approved
    counseling agencies that available to help. They will promise to work with you and the lender to
    find a solution. And remember, you never have to pay a fee to benefit from any government
    programs.

  • Switched documents. If you are asked to sign a new rescue loan documents, be sure of what you
    are signing. Many times, you are tricked. You are in fact signing documents that give title to the
    scam artist.

If you suspect any illegal activity, walk away from the deal and report the incident to your local law
enforcement authorities.

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