Foreclosure Rescue Scams Run Rampant

Hi Gareth,

A homeowner should always call their bank to discuss options. The scammers are out and working very hard.

Anthony

Gareth,

It's a shame that some people will do anything to make a buck.  I advertise as an agent to help people facing foreclosure and that's one of the first things I get clients to do.  Either talk to the bank for sign a release so I can.  I can't help someone if I don't know what options the bank has for them.  Unfortunately a lot of people in foreclosure don't want to talk to the bank.  That's where it's our responsibility to educate them and provide them with the best options possible.

Gareth,

Timely advice. Whenever there is a sniff of distress, the low lives come out of the woodwork to prey on those adversely affected. They can be very persistent and unfortunately at times succeed in fooling people. But yes, the most important call when in payment trouble should be to the lender. In today's troubled environment the bank is willing to listen, more so than it normally would be.

I could not agree more.  For those who have been paying attention to this disaster, several states are making the ability of companies to engage in this type of business illegal.  In Ohio, The AG has cracked down using the current laws to regulate their activity.

If you are dealing with someone in foreclosure, there are things a good advocate can achieve for them.  In reality, trying to explain the loss mitigation process and the litigation process is overwhelming and improbable. 

The simple truth is that stopping a foreclosure is a misnomer.  Once the complaint has been filed, rarely does a owner have a defense.  That is not to say that there are not things an attorney can do (prevent the plaintiff's right of redemption, mediate a resolution, or use a loss mitigation alternative to reorganize, restructure or refinance the debt).

If you are a Realtor, work with an attorney that understands loss mitigation and the foreclosure process.  A good attorney and a hard working Realtor can do wonders for consumers facing this type of difficulty.  I have seen consumers walk away from their troubles relatively unscathed and the lender sending 1099 to the homeowner rather than go after the redemption amount.

un real - thanks for the warning and advise!  Too many homeowners will again be victims in these troubled times.  makes me crazy! 

Gareth,

Not all the "Foreclosures Savers" are All Scammers that is very very Unfair for you to say. In every field and every Professional unfortunately there are those who use their profession for the wrong. In my company we do work with the Families in their situation. I personally will guide the families and inform them of their rights and what they can do to SAVE there home. Families who in this situation can not afford an Attorney I refer them to the courts, forms, free legal aid, 211,Cmmunity Action Agencies, LossMitigation for work out plans, loan modification etc. I always help them avoid Bankruptcy you see even some Attorney Prey on the families in this situation. Also always tell the families to read all documents never sign anything you do not know of. Be careful of the abundance of letters from Banks, Loan Officers, Brokers, Attorney's and Investors.

So you know what Scammers come in All shapes and sizes. Also the families in this situation literally go through the same grieving process of someone that is grieving for a love one.