“Stop foreclosure now!”
Ever seen a handmade sign bearing these words on the side of the
road? Or perhaps you’ve received an
email from someone who promises to work with your bank and keep foreclosure
from happening? Foreclosure defense and
“avoid foreclosure now” promises are everywhere, especially in a market that is
still struggling.
While it is certainly important to seek help when you are facing
a foreclosure on your home, knowing who to trust for the right kind of help is
crucial. The wrong kind of help can put
you deeper in the financial hole than you were when you started. Sure, there are a lot of people who say they
can help you stop your foreclosure. But
are they legitimate? Here are scams to
watch for:
The "Forensic
Audit"
Forensic auditors will attempt to collect an up-front fee
from you in order to “look over” and “assess” your mortgage and foreclosure
documents. They will then use their
“expertise” to review your mortgage documents and create a report how you can
avoid foreclosure. The funny part is
that this process of reviewing the paperwork is just the first step that qualified
foreclosure defense attorney will make and it’s an important one, but not
enough. That’s why the “forensic audit”
promise is a scam if that’s all they’re offering.
Rent-to-Buy Schemes
In this scam, a con artist will say that if you give them
the title to your house, you can stay there as a renter and buy it back from
them later. They will tell you that when
the title is surrendered to them, they can refinance it with their good credit
to prevent losing your home. What they
won’t tell you, however, is that these scams often involve impossibly difficult
“buy back” arrangements, allowing these new owners to walk away with your house
AND your money. They might also raise the “rent” they agreed upon at the
beginning and forcing eviction if you can’t pay the higher amount.
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