Six foreclosure rescue scams to watch out for

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gavincooper
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Six foreclosure rescue scams to watch out for

Post by gavincooper »

Facing foreclosure is an extremely stressful situation. Those in danger of losing their homes are understandably desperate to find some way to keep their home. Unfortunately, there is no shortage of people aware of that fact and willing to exploit it for personal gain. With millions still recovering from the housing market crash, there are many different scams out there promising to stop foreclosure for a price of course. Here's a look at six loan modification scams.

Phantom foreclosure counseling scam

This is probably the most common foreclosure rescue scam out there. Essentially, an individual will charge upfront fees in return for a service that will never actually be carried out. Since 2011 it has been illegal for individuals or organizations to charge up front fees for foreclosure assistance. It's sound advice to never pay up front for foreclosure assistance.

Forensic load audit scam

Another way desperate homeowners can be duped is by paying someone (usually a lawyer) to carefully go through various mortgage documents in the hopes of uncovering some errors or loopholes that may stop the foreclosure process. Again they usually charge up front and often perform no actual service. In the event they do actually review the papers, they rarely find anything. And even if they did, a lender is not required to modify a loan because of an error in the paperwork.

Playing the negotiator scam

The goal of a con artist working a foreclosure rescue scam is to isolate the homeowner from the lender. In this scam, an individual takes up front payment to act as a negotiator between the borrower and the lender. The person instructs the borrower to send all communication through him. As a result, nothing gets done and the borrower is unaware of it. A reliable foreclosure service will never instruct you to cease communication with your lender.

Sign over your property scam

Many scammers will try to convince homeowners that they are more likely to achieve success in saving your home if they are in full control of the situation. In order to save your home they'll need you to sign your property over to them. While this sounds extremely suspicious, convincing scammers have been successful and getting homeowners to sign over their property to them.

False representation scam

Often to gain the homeowner's trust, an individual or organization may falsely represent themselves. They may profess to be a government agency but will charge for services that should be free. A good way to spot this scam is to look closely at their website and URL. It may look like the real thing but if you look closely you will spot differences between it and the official government website.

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Source: loansafe.org/the-top-6-loan-modification-scams

Sawank
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Re: Six foreclosure rescue scams to watch out for

Post by Sawank »

It is very knowladgeable, thanks for sharing this here. With this information people will aware about scammers who do that type of things... :)

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