With the recent increase in foreclosures, scams through “foreclosure rescue companies” have also appeared on the scene. They claim that they will help you, but really they are intending to make a profit at your expense. If your property is in foreclosure, be cautious.
This is most likely the first time you have been in this situation. This is a time in which the homeowner is very vulnerable. Con artists love to take advantage of you in these uncharted waters.
There are a few points to be aware of when dealing with a “foreclosure rescue company.” Watch out for:
*Asking for mortgage payments to be paid directly to his/her company or bank account, rather than your lender. Reality: They pocket the money, and you STILL lose your home.
*They claim “We’ll save your credit!” You pay them a fee and transfer your property deed or title to theirs to avoid foreclosure on your record.Reality: The foreclosure will be reported against the borrowers on the note, not anyone else.
*They say they’ll give you money, if you just sign the house over to them so they cure the default.
Reality: There is nothing wrong with this, as long as the party taking over really does pay the loan current, but you are still ultimately responsible for the loan. BE CAREFUL!
*They say they’ll buy the property, lease it to you, and you’ll have the option to buy it back.
*They ask for money up front before providing any service.
*They instruct you not to contact your lender, lawyer, housing counselor, family, friends, or others.
*They require payment only in the form of cash, cashier’s check, or wire transfer(Moneygram).
Every encounter I have had with this particular point included the request that the money be sent somewhere in Africa, usually Nigeria. They make it seem safe and legitimate. They claim they are out of the country with a church group, and play the part of the devout religious person, ending their communications with “God Bless You.”
Take home message is, if you’re in foreclosure or about to go through foreclosure, DO NOT let yourself become trapped in a scam with a “foreclosure rescue company.” The best thing to do is to contact your lender and a REALTOR. Both can help you through this trying time. Keep your head up. You will get through this.
Comments(0)