| Don't Get Caught By Foreclosure Rescue Scams |
| Articles - Mortgage |
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As the number of foreclosures rise across the United States, there has also been a rise in scams by companies who promise they will save homeowners from a foreclosure. Of course, nothing could be further from the truth. Because what these foreclosure rescue scams do is wreck your credit, take your money and to top it off, they wipe out any equity you may still have in your home.
As the number of foreclosures rise across the United States, there has also been a rise in scams by companies who promise they will save homeowners from a foreclosure. Of course, nothing could be further from the truth. Because what these foreclosure rescue scams do is wreck your credit, take your money and to top it off, they wipe out any equity you may still 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. If you do decide to deal with a third party, there are a few things to be aware of in order to avoid problems. First, make sure that everything is put in writing and that you get a copy of any agreement you come to. A written document can be used to protect your rights if a problem occurs. Verbal promises have no weight in court. Don't be rushed into signing anything, even though you know that time is of the essence to resolve your problem. Read each and every document before you sign. 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. Do not trust a foreclosure rescue company to make payments on your mortgage for you. Make those payments yourself directly to your lender. When you do that, your mortgage holder can see that you are working towards making your payments. And by making payments yourself, you can be assured that all the money is being applied towards your mortgage without fees for the rescue company being taken out first. 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. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Protect yourself and your family. Find out how to avoid foreclosure scams. Get answers to some foreclosure FAQ so you don't get fooled. |