As a homeowner facing foreclosure of your home, be
careful of the people that will contact you.
Beware the scams.
there are several legitimate services designed to help those facing
foreclosure, there are just as many unscrupulous firms trying to take
advantage of someone in distress. Solutions that sound too simple or too
good to be true usually are. If you're trying to sell you home without
the services of a real estate professional or attorney, beware of buyers
who are trying the rush you through the process. While there are so many
variations, you should be especially alert to the following scams:
This is a scam involving a bogus “buyer” approaching you and offering to
pay off your mortgage or give you funds when your property is sold. This
bogus "buyer" will suggest that you vacate the home as quickly as
possible and deed the property over to them. The bogus "buyer" then rent
the property to a third party, collects the rent , doesn't make attempt
at curing the mortgage, making any payments, and allows property to
enter into foreclosure. In this case not only does the home get lost to
foreclosure, you may still be responsible for any deficiency resulting
from the foreclosure. Signing over your deed to someone else doesn't
remove or relieve you of your obligation the original loan.
Bogus credit counseling groups
Some scammers representing themselves as consumer credit counseling
agencies may approach you and offer to perform credit services for an
upfront fee. The services rendered are often services that you could do
yourself for free, such as negotiating a new payment plan with your
lender, or pursuing a pre-foreclosure or short sale. Many of these are
discussed in detail in this site. If you have any doubt about these
third party services, check your local listings for a state, local or
HUD-approved housing counseling agency.
Precautions you should take
We understand that you’re in the midst of some very trying time when
facing foreclosure, and follow these simple precautions to avoid being
“taken” by a scam artist:
Don't sign any paperwork that appears confusing, especially if you are
being rushed to do so.
Make sure that all services offered are presented in writing and are
Never sign over a deed to your home to someone else without consulting
legal counsel, remember that doing so does not necessarily relieve you
of your loan obligation.
Always check with your existing lender before entering into any deal
involving your home and your mortgage.
Investigate if there are any complaints against the prospective buyer if
you’re selling your house. You can usually find such information from
your state Attorney General’s Office or the Real Estate Commission as
well as the local better business bureau .