Foreclosure Scams to Avoid

Foreclosure Frauds

In today’s era there are so many different schemes of trickery and scams taking place. It is also evident since lately that thousands of homeowners have fallen victim to these scams. Some of us are still sleeping and have not yet “smelled the coffee”. To cut a long story short, there are many scams associated with foreclosures. We must do everything in our powers to prevent them from happening to us as it can be very devastating both emotionally and financially.

Scammers tricking Foreclosure affectees

A scammer, be it an individual or company, tend to prey on homeowners who are struggling with repaying their mortgages. They do this by lying to them that they will help them out of the mess and possibility avoid foreclosure. At the same time charging huge sums of money. This is not the case though as most homeowners are often left in a more dreadful position that before.

  • Bogus Consulting Agencies 

These are some of the most annoying companies that will be up in your face. Reason being, just because they are aware that you are a homeowner who is near foreclosure. They just want to offer you some type of service. Usually for a huge fee of course which is how they benefit. It’s all about them and not you! They make inexpensive phone calls to you and prepare documents to back up their lies. This is so they can either sell your home on your behalf or make some decisions for you at a cost. You can easily make  those decisions yourself of course. They are just here to comfort you for a moment just to get in your piggy bank!

  • The modification scam 

As a borrower who is struggling to repay your mortgage you have a few options that are open for you to apply. There is repayment plan or a loan modification. Again, these avenues are open for every and any borrower to apply. Nonetheless, devious scammers and con artists tend to capitalize on this. They often send out emails and make phone calls offering you a service. They will try to apply for a modification for you, however you can easily apply for it yourself.

These companies or individuals may also sound like government officials. But they are really just trying to get in your pocket.  Eventually they try to get you to pay high fees for a promised loan modification that might never happen.

  • Equity Theft 

It is another highway robbery associated with foreclosure. It is one that a homeowner can and might easily fall victim to. Due to this approach and experience of the persons who are carrying out this procedure. When a so-called buyer approaches you and tries to use convincing words and “sweet talk” to lure you. They are trying to get you to sell them your property. Though you’re at the brink of foreclosure, this is exactly what equity theft is.

The individual might also offer less than the market value of your property and make promises to repay your mortgage. Be mindful that the buyer may even ask you to move out of the property and transfer the deed to him/her. This is where things will get messy of course. Equity theft is a very popular foreclosure scam and con artists are waiting to see who they can hit next.

  • Lender Scams 

At the point where you are on the verge of a foreclosure, it might appear as if everyone wants to help you out. Truth is,  that’s not really the case, these unscrupulous persons are just looking for an easy way to get your money; or at least the little that you have left.

A lender might approach you with a huge promise of rescuing you from foreclosure. They do this by granting you a refinancing of your mortgage. Usually at a much lower rate than your current mortgage is. In the beginning you will realize that your rates are on the low.  Everything seems to be going as planned and then the hardship of the situation approaches. All your bubbles burst at once when you realize there’s a lump sum to be repaid in the end. In short, it was just a mere scheme to inveigle you into taking another mortgage(refinancing). Then leave you in additional debt in the end.

  • Internet and Phone Scams

Due to the massive growth and boom of the Internet, foreclosure scams have somewhat become one of the most predominant scams of all time. We use the Internet everyday and are always checking our emails, chatting on Facebook or even ordering some of our favorite items. This alone makes it quite easy for a con artist company or individual to grab certain information about us. They can then use it to lure us into some type of foreclosure trickery or scheme somewhere along the line.

The Internet is not necessarily a bad place but can be used for terrible things of course. As a homeowner you must exercise every measure necessary to protect yourself from popular scams of such. Another great device that works well with the Internet is the telephone; because usually if you should receive a phone call after checking your email, you would naturally buy into whatever is been sold or offered to you.

Scams over the phone or Internet can force a person to obtain vital information from you. Info such as your bank account information or even your Social Security Number. This is done just by telling you the right information when you’re on the edge of a foreclosure. Once these persons or companies have your data. They will use it against you in some way or the other. It could be sold or give you offers to take additional loans. You might also pay some fees for something that will certainly not help you to get out of the current situation that you are in.

At the end of the day the Internet and phone foreclosure scam will put you in two sticky positions. You will have your personal data stolen. You are still about to lose your home but the culprits took off with some of your money. Therefore you must be very mindful of these scams and try to keep a level head. Despite the fact that you are about to face foreclosure keep in mind that you are in a world that is full of trickery. Companies do this just to get some money from your pocket and absolutely nothing in return but a foreclosure.

Be aware!

If you were a victim or any of the scams you can contact us to find some useful information on how to deal with your foreclosure.

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