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

With the accumulating number of foreclosures in the United States 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 truly scam artists and need to be put in jail. If you are facing foreclosure, you may want to read on to learn about the signs of a possible scam and what to watch out for when trying to fight foreclosure.



Below are the warning signs of a foreclosure rescue scam. If you are working with a person or company that presents any of the following, you may want to think twice and look for someone else to work with.



-The individual asks you to pay their company your mortgage payment and then they will forward that to your lender on your behalf. (This makes no sense, just send the mortgage payment to the lender yourself.)



-The rescue associate asks that you give them your deed, or transfer the title to them and they will help you avoid the 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 consuming away precious time by working with one of these associates.


-The company require that you give them a fee to provide you with 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 thoroughly evaluated and you feel comfortable with the the services.



-If you are offered a contract to sign with a foreclosure rescue company, take it to an foreclosure lawyer and get it analyzed. Dont 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 common promises some associates 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. Well cover you first couple 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 score or help you'reestablish your credit.

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



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

Another important thing to remember is to always stay in contact with your lender 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 scammed, that's not a good reason to relax and waste time. You need to get help and you need to do it quickly. 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 lender to turn you down at the last minute!