Return to the Index of Articles

Visit the section about Scams

Responsible Surfing

Website Navigation:

Homepage

Have you considered an offer that begins with something like Guaranteed to Stop Foreclosure. We can save your home! No problem if your home is scheduled to be sold.? DON'T. Don't consider these offers. Avoid these heartless scamsters who mascarade around as respectable business people. In reality they prey on your emotions and desperation with the sole intention of separating you from your monies.

As soon as you are aware of an advertisement or offer that guarantees elimination of whatever the problem is, chances are it is a scam. Remember, "if it sounds too good to be true, it probably is".

Foreclosure rescue scams come in different disguises but they all have the same goal - to separate you from your monies. Avoid any transaction where only a wire transfer or a cashier's check is acceptable for payment. Avoid any sale where the buyer is offering cash for an amount that is out-of-tune with the current housing market in your area.

Some foreclosure rescue scams use a distinctive feature of Advance Fee scams. The consumer (victim) pays monies upfront before the service can begin. In these, the unscrupulous scamster tries to convince you that their company will negotiate an arrangement with the mortgage lender that is in your best interest (typically where you can keep your home) in exchange for an upfront fee. With another scam, you are told to pay the individual directly and they will pay the lender.  Unfortunately, by the time you realize negotiations or payments didn't happen, the scamster can't be found, you have lost your money and you are in a worse situation with your lender than before.

Should you decide to refinance be sure a representative that you know from the mortgage lending company is present at the signing of papers. If you are told not to contact your lender, lawyer or anyone else you have previously dealt with regarding your mortgage or possible foreclosure proceedings, walk away from the person or company even if you have already given them monies. You can lose much more. You want to verify with the lender that they approved a new loan that will make your existing mortgage up-to-date. You want to avoid the scamster who tries to trick you into signing papers that transfer or surrender the title of your home to them. Verifying the new loan yourself with your lender, not relying on someone else to arrange or verify, can avoid giving away your home and perhaps leave you still being responsible for the mortgage.

Avoid any consideration where you transfer ownership (deed) to someone else. It may sound reasonable to transfer ownership temporarily so you can live in your home while paying rent to buy it back. In fact, it may sound like a miracle that someone would want to pay your mortgage and avoid foreclosure. The truth is, once you can no longer pay the exorbitant rental fees or the person defaults who has the new mortgage loan, you will be evicted, you will no longer have any rights to your home, and you will have lost all the monies you put into your home.

It also may sound reasonable to transfer ownership (deed) and move out of your home in exchange for finding a buyer and giving you a portion of the profit when your home is sold. The truth is that your mortgage doesn't automatically transfer with the deed. You are still responsible to pay the mortgage loan in addition to relocation costs and your new rent. In the meantime, the scamster keeps the rent from the new tenants (not buyers) and you still have to deal with the foreclosure.

If you are considering bankruptcy to temporarily stop foreclosure, go directly to an attorney and find out if bankruptcy is the correct option for you. Don't allow a person or company to arrange or handle the details for you.

Now that you know how to recognize and avoid the majority of foreclosure recovery scams, read the FTC article Mortgage Payments Sending You Reeling? Here's What To Do that tells you what you can and should do when you are faced with the prospect of foreclosure. If you are the victim of a foreclosure rescue scam, contact the FTC in the USA or the RCMP in Canada.