If you’re facing the possibility of foreclosure because you’ve gotten behind on your mortgage payments, you may be willing to consider any option that will let you keep your home. Unfortunately, there are a lot of unscrupulous people out there who prey on people who are in this position with foreclosure scams that make money for them. They may charge large “service fees” or even trick people into signing over their homes.
Let’s look at some signs that you may be dealing with foreclosure scammers:
Guarantees
No one besides your lender can guarantee that your home won’t be foreclosed on. Any company that claims to offer that guarantee is probably not legitimate. Even if it works out a payment plan for you, your lender must agree to it.
“Rescue loans”
This is a bait-and-switch scam where the homeowner signs documents for a new loan. However, unbeknownst to them, they’re signing over the home’s title to the scammers.
Rent-to-buy agreements
This is another way that scammers can get the title to a home. They agree to buy it for less than it’s worth. They let the homeowners continue to live there and pay rent that supposedly goes to rebuying the home. However, they make it virtually impossible to purchase the home back, and sometimes, increase the rent to the point where homeowners can’t afford to live there.
You’re instructed to stop paying your mortgage
Some companies will tell homeowners to do this while they’re supposedly negotiating with the lender or working on a new loan. This will only hasten the foreclosure and damage your credit.
You can find little information about the company
That’s typically a red flag. A Google search should lead you to reviews and other information online that can serve as a warning by others who have done business with an disreputable company.
When your mortgage is at stake, you never want to turn over negotiations to a third party and remove yourself from the situation. You also should never sign any documents unless you have thoroughly read them and understand them. No reputable company should hurry or pressure you into signing anything.
Many people are able to avoid foreclosure and remain in their home with mortgage payments they’re able to afford. However, you should seek reputable advice from experienced debt relief professionals.
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