Foreclosure Scams

Home foreclosure is one of the most typical Problems that folks face today. More frequently than not it originates from one missed payment which spirals out of control. Before you know it you have missed three or 4 payments and the mortgage lender or bank would like you to pay everything you owe all at once. When the house owners understand that they have made a grave mistake they resort to anything they can to get out of a tight situation.

This is when the scammers find their way into your mailbox or give you a call. Foreclosure scams are very common as much as the problem itself. Since house owners believe that they don’t have any choice they fall for these traps and make their situation far worse than it was. Trick operators also advertise online, publish advertisements in the local newspaper, distribute flyers, and call homes which are included on the foreclosure list. They call themselves mortgage experts who offer foreclosure services or publicize with’We buy houses’ slogans.

Most common scams:

Bankruptcy Foreclosure Scam They operate by promising the homeowner that their house will be saved. In return they will either ask for the homeowner to pay their mortgage directly to them, hand over their deed and pay rent, or obtain refinancing. But instead of fulfilling the other end of the bargain they don’t contact your lender or obtain refinancing for you. They keep all the money and file bankruptcy without your knowledge. Since the homeowner is not aware that bankruptcy has been filed, they fail to participate in the case. The case is dismissed and the house continues onto foreclosure. Apart from loosing money and your home, you will also have a bankruptcy on your record.

Equity skimming The operator poses as a buyer. The operator promises the homeowner to pay the mortgage or given them a sum of money once the property has been sold. The operator then convinces the homeowner to sign over the deed and move out. The homeowner can stay but they have to pay rent. If they opt to move out the operator lets a third party rent the property. The operator does not pay the mortgage and lets the mortgage lender foreclose. If the house has equity, the operator sells the property and pays off the debt. Then the operator keeps the equity that the homeowner could have had if they sold it.

There are some good resources that may actually help you however. Leaders in money Education ( http://www.lifeav.org ) is an association that is an affiliate chapter of a non profit 501 ( c ) three that will help you. Take a look their website or fill out the contact form at http://www.free-foreclosure-stop.com and you will get some immediate free analysis to help guide you thru some options.

For more information, go to how to stop foreclosure for more foreclosure tips.