Caveat Emptor!
I'm seeing more and more stories of home owners who are facing foreclosure, being preyed upon by scam artists. There are several different schemes being used, but all of them end with unsuspecting home owners losing their equity and their homes.
If you're a home owner facing foreclosure, beware of...
- Ads that offer to give you cash up-front.
- Offers to make your monthly mortgage payments while you continue you living in your house.
- Claims that you can temporarily sign over your deed, and get your house back once you're back on your financial feet.
- Signing anything that you don't completely understand.
If you're in need of this type of help and you see an ad that looks like a way out, be sure to have an attorney look over any paperwork before you sign it.
Unfortunately, many home owners have unknowingly signed away their houses to what appears to be a legitimate institution while these institutions have sold their homes out from under them. To make matters worse, the "stand-in" buyers who purchase the homes from these fraudulent organizations, refinance the house and take all the equity before the unsuspecting home owners even know there's a problem. The home owners don't find out they've lost everything until it's too late.
For more information on these scams, and ways to find help if you're a victim, follow these links...
Young Lawyer Takes Aim at Equity Strippers
Mortgage Foreclosure Scams Cost Owners Their Homes!
Warning from Attorney General about Equity Stripping
One more caveat; Beware of refinancing your home because you need the cash from your equity. You may get a temporary fix, but you now have a higher monthly payment!
If you're looking for an honest mortgage broker, who will council and advise you with the straight truth, there are some here on Active Rain who would be willing to help. And to better educate yourself on mortgages in general read this post by Jeff Belonger: These Mortgage Gems and Foreclosure Tips-How To Avoid Foreclosure There are lots of links in his post! And read this post by David Doerr on Mortgage Fraud.
If you'd like assistance from a mortgage broker that I personally work with on a regular basis, click here Contact a Lender.
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