Foreclosure Rescue Scams – Here’s How To Avoid Them

As foreclosures increase across the US, so to do scams that promise to come to the rescue of homeowners facing foreclosure. Instead of saving your home, what foreclosure rescue scams do is steal your money, destroy your credit rating, and wipe out whatever equity you may have in your home.

These foreclosure scammers victimize people who have fallen behind in their mortgage payments and are facing a probable foreclosure. These con artists easily find potential “clients” because by law, a mortgage holder must publish a notice before they are actually able to foreclose on a house.

Once they’ve picked out a vulnerable person, the scam rescue company gets in touch with the homeowner by phone, email or even with a home visit. It’s important not to be swayed into thinking that because you’ve seen an ad in the paper or on the web, they are aboveboard. And even if they refer to themselves as a foreclosure rescue agency or a mortgage consultant, it doesn’t really prove that they are.

Be very cautious of anyone who offers to negotiate with your lender for a fee. To protect yourself, take the time to check out their reputation and their credentials. See if the Better Business Bureau has any record of them.

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.

The best way to delay or to a stop a foreclosure is to contact your mortgage holder and find out what if anything can be done. Any extra money you have will probably be better spent being applied towards your mortgage or in getting legal advice.

Now if you do decide to work with a third party, here are a few things to consider in order to avoid problems.

It’s important to get things in writing and be sure that you get copies of any agreements. A written document can protect your rights; verbal promises don’t and they can’t be used in a court of law.

Don’t allow yourself to be rushed into signing contracts or papers, even though you may have a sense of urgency about resolving your problem. Be sure that you read every document before signing. It’s important that you understand exactly what you are signing.

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.

First and foremost, never sign over the deed to your house. If you do you are handing over both your rights to your home as well as any equity you have. Second, do not sign any document with blank spaces. These could be completed after you sign and you don’t want to give someone else that kind of control. Finally, any time that you find errors on a document, don’t sign until the errors have been corrected.

Don’t agree to let a foreclosure rescue company make your mortgage payments. Make them yourself directly to your mortgage holder.

By doing that, your lender will see that you are trying to make your payments. And just as important, you will know that all the money you pay is going towards your mortgage without fees being paid out first to the rescue company.

Just remember that adage. When something sounds too good to possibly be true, it probably is. If you follow these steps, you can prevent yourself from being victimized by any foreclosure rescue scams.

If you are facing a 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 find out how to avoid foreclosure scams.