Foreclosure Scams to look out for
Homeowners facing foreclosure should be
aware of unscrupulous
lenders and scammers. Don't get me wrong, most lenders and agencies
are reputable and legit. However some lenders, commonly second
mortgage issuers will use unethical practices that increase the risk of
nonpayment by the borrower. These tactics may include lending a large
amount in hopes that the borrower will not be able to keep up with the
payments, charging outrageous interest, points or fees. They may also
repeatedly refinance the loan without any real beneficial reason to the
borrower. Homeowners facing foreclosure are often targets of these
scammers because they are seeking any solution possible at the time.
One of the most common tricks is an "equity skim". What is equity
skimming? This is when a buyer approaches you and offers to get you
out of foreclosure buy paying off the mortgage or offering money when
the property is sold. They will often suggest you move out quickly and
sign the deed over to them. They will then collect rent from the property
and fail to make payments on the mortgage. The lender will continue the
foreclosure process and foreclose. Signing over the deed does not
mean you are no longer obligated to make mortgage payments.
Another trick scammer's use is to set up a "counseling"
agency. They may contact you offering to do certain services for a
given fee. Often times these are thing you can do yourself for free. It is
important to note that most services are legitimate and will provide lots
of great help.
So what do you do if you suspect you are being duped? The
most important things is don't sign any documents unless you fully
understand what you are signing. If the party you are dealing with
makes any sort of promises make sure they are in writing. If you
arrange a contract of sale loan assumption make sure you know
weather or not you are released from liability of the debt. Consult with
your attorney before agreeing to any deal that involved your home.
Should you decide to sell your home to stop foreclosure, have a look at
any possible complaints pertaing to the prospective buyer.
lenders and scammers. Don't get me wrong, most lenders and agencies
are reputable and legit. However some lenders, commonly second
mortgage issuers will use unethical practices that increase the risk of
nonpayment by the borrower. These tactics may include lending a large
amount in hopes that the borrower will not be able to keep up with the
payments, charging outrageous interest, points or fees. They may also
repeatedly refinance the loan without any real beneficial reason to the
borrower. Homeowners facing foreclosure are often targets of these
scammers because they are seeking any solution possible at the time.
One of the most common tricks is an "equity skim". What is equity
skimming? This is when a buyer approaches you and offers to get you
out of foreclosure buy paying off the mortgage or offering money when
the property is sold. They will often suggest you move out quickly and
sign the deed over to them. They will then collect rent from the property
and fail to make payments on the mortgage. The lender will continue the
foreclosure process and foreclose. Signing over the deed does not
mean you are no longer obligated to make mortgage payments.
Another trick scammer's use is to set up a "counseling"
agency. They may contact you offering to do certain services for a
given fee. Often times these are thing you can do yourself for free. It is
important to note that most services are legitimate and will provide lots
of great help.
So what do you do if you suspect you are being duped? The
most important things is don't sign any documents unless you fully
understand what you are signing. If the party you are dealing with
makes any sort of promises make sure they are in writing. If you
arrange a contract of sale loan assumption make sure you know
weather or not you are released from liability of the debt. Consult with
your attorney before agreeing to any deal that involved your home.
Should you decide to sell your home to stop foreclosure, have a look at
any possible complaints pertaing to the prospective buyer.