Home-foreclosure20
By A. Jakobsson
Home Foreclosure Scam: Be Wary of the Red Flags Missing mortgage payments is bad enough, losing your home due to a scam is even worse. At the first sign of mortgage problems, experts will advice homeowners to call their lender immediately. However, for most people, the requirement to make a move and solve the problem is not so urgent that when they do something, they act out of desperation. As a result, they seek help from " companies " that promise to save their home but are actually scams. So, to avoid becoming one of the victims, here are some red flags you should be aware of: Equity Skimming - An offer of " temporary " transfer of ownership In this scan, the person ( third - diversion ) will act as a buyer of the house and will promise to fix any financial problems with your lender in exchange of signing a " temporary " transfer of ownership. You will be asked to pay your rent while they take care of your mortgage. In reality, the third - party doesn't work out with your lender and will even use the equity you have built up in your home as a lien for new loans pushing your much closer to foreclosure. Your equity is lost, your mortgage is gratuitous, and your rent is gone. A promise of an overnight foreclosure rescue. If the offer sounds too good

to be too, it usually is. Do not sign papers saying that you allow the company to represent you on your behalf. Home foreclosure services with a fee. Since most homeowners are embarrassed to discuss financial problems with their lenders, some take the services of home counseling agencies to represent them to their lender. While there are legitimate businesses that can help you with your problem, others are there to rip you off. An agency that charges with a certain fee especially up front is a red flag. To be sure, experience HUD - approved counseling services. A foreclosure help in exchange of signing tons of papers you can't understand. Don't give in if someone approaches and asks you to sign papers with a promise to save you from mortgage problems. Consult your attorney. Do not sign papers with blanks and spaces. Review the paperwork. Do not sign word you do not fully understand. Beware: you might be signing over the deed of your home. Unsolicited mail from foreclosure salvage companies. Since mortgage records are public documents, don't be surprised if you receive mail about the standing of your mortgage from different companies. Some of them are legit. But don't be fooled by professional looking letters. Unsolicited mail is usually a red flag.
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