Watch Out For Foreclosure Rescue Scams
As the number of foreclosures rise across the United States, there has also been a rise in scams by companies who promise they will save homeowners from a foreclosure. Of course, nothing could be further from the truth. Because what these foreclosure rescue scams do is wreck your credit, take your money and to top it off, they wipe out any equity you may still have in your home.
Those involved in foreclosure scams prey on people who may have fallen into arrears on their mortgage payments and so are facing a foreclosure. It’s easy for these scammers to locate potential victims because before a notice of foreclosure is filed, the mortgage holder is required to publish a notice.
Once a vulnerable person is found, the scammer then contacts the homeowner by phone, mail, email or even in person. Don’t be fooled into thinking if a company advertises their services on websites or in newspapers that they must be legitimate. Even if they refer to themselves as a mortgage consultant or a foreclosure rescue agency, it doesn’t mean they are.
Be extremely cautious of any company offering to negotiate with your lender on your behalf. Check their credentials with the Better Business Bureau and your local police department.
If you are dealing with a possible foreclosure you don’t need the problems that can be created if you get scammed. For that reason, be extremely skeptical of anyone offering to represent your interests for a fee.
Your best bet to delay or even stop a foreclosure is to get in contact with your mortgage lender to discuss possible solutions. If you have a bit of extra cash, maybe pay down mortgage arrears or get some legal advice, instead of paying somebody to do what you can do yourself.
Now if you do decide to work with a third party, here are a few things to consider in order to avoid problems.
Get everything in writing and be sure to keep copies of any agreement. Written documents can protect your rights in the event of a problem. Verbal promises are worthless in a court of law.
Don’t be rushed into signing anything, even though you know that time is of the essence to resolve your problem. Read each and every document before you sign.
And don’t sign if it doesn’t make sense. Take it to a financial adviser or an attorney to get advice and explanation. You should be aware of a few things that you probably should never sign.
Do not sign over the deed to your house. By doing that you lose your rights as well as any equity you may have built up. Never, ever sign a document that has blank spaces that could be completed after you sign. And if there are errors on a document, refuse to sign it until corrections have been made.
Do not trust a foreclosure rescue company to make payments on your mortgage for you. Make those payments yourself directly to your lender.
When you do that, your mortgage holder can see that you are working towards making your payments. And by making payments yourself, you can be assured that all the money is being applied towards your mortgage without fees for the rescue company being taken out first.
Remember the adage that if a thing sounds too good to be true then it probably can’t be true. By following these suggestions, you will be able to avoid being a victim of foreclosure rescue scams.
If you are facing foreclosure, you need help. Don’t let yourself become a victim to a foreclosure scam. Get free foreclosure information at http://www.getforeclosurefacts.com and learn how to avoid foreclosure scams.
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