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Seniors are one of the top targets of 'foreclosure rescue specialists' for a variety of reasons. If you are a senior, you've probably lived in your home for a long time and have built up a substantial amount of home equity in the process. Even a fraction of that amount is a very attractive sum for a scammer and they may attempt to scam you out of it in a variety of ways.
It's probably not easy for you to get a loan from a lender of bank, if you are a senior facing the threat of foreclosure. It can be difficult to find somebody who will offer you a second loan on a fixed income or pension, without pledging any collateral. This is where a con artist steps in, offering to refinance your existing mortgage, typically replacing them with more expensive loans that you cannot afford to pay. When you eventually default on these payments the scammer might offer to find a buyer for you home and pocket any equity available as service fees. There are many variations of equity scams that thousands of homeowners fall prey to every year.
Another very popular scam that con artists pull on seniors features a 'home improvement' or 'home repair' hook. This type of con can even push an otherwise financially comfortable senior into foreclosure. The scammer appears disguised as a contractor and offers to make repairs on your home. They may recommend some very attractive financing options but the loans they will arrange will be out of your league or they may keep on increasing the amount you have to pay by quoting more problems they've uncovered in the course of their repairs. Defaulting on the loan or being unable to meet the rising cost of repairs can easily push you into foreclosure.
Unfortunately, seniors make very easy victims. They might not be sophisticated enough to handle complex legal issues and might be more than happy to have someone handle it for them. Many of them might be single or be widowers and may not be financially savvy. They might also be more trusting of people and more easily intimidated by fast-talking con artists. It's also easy to befriend a lonely senior, scam them under the guise of providing friendly counsel and have them sign over the deed to their house. There have been many reported cases of even family members scamming their elderly relatives.
The only way to be safe is to not fall for any of these scams. Be extremely suspicious of anyone who knocks on your door offering to save you from foreclosure by taking out another loan or who offers to make home repairs uninvited. If you do plan to make repairs, it's best to contact a legitimate contractor, check out competing bids and do a background check on the license of the contractor you decide to go with. Don't sign over the deed of your house to a friend or family member without getting some legal counsel. If you fall into the low-income category you may qualify for free legal aid.
Contact a Consumer Credit Counseling Service office or your local legal aid center to get more information on the options available to you as a senior to avoid foreclosure. As always, I am here to be of any service I can, please do not hesitate to call on me!
Vanessa Stalets
615-957-6333
RE/MAX Elite
615-66104400
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