Homeowners Beware of Foreclosure Rescue Scams

There are lots of scam artist who are preying on distress homeowners and taking advantage of their situation. These homeowners are already in depression and most of the time, they don’t know their options, who to contact for help and what to do to avoid foreclosure from their credit. And top of all these stress of losing home, foreclosure scam artists are creating additional stress to these distress homeowners.

Once the lender files for foreclosure process, it becomes public record, so anyone can access this information. As soon it becomes public record, homeowner receives many letters and postcards from individuals claiming they can help to solve their foreclosure problem, some offers “Guarantee” that they can stop the foreclosure. No one can guarantee to stop foreclosure.

Now, there are some honest people also out there who want to help these homeowners from foreclosure. My advice is that when someone approaches with help, you have to be careful in accepting their help. If their offer sounds too good to be true, then it probably is.

This scam artist approach you with different tactics to take advantage of your situation, here are some of the known ways, they will come to you:

If someone approach you and charge any upfront fees for their services then do not work with them. Some of these scam artist will suggest you to stop the mortgage payment so that you can pay their fees, it is a red flag, avoid those people. You don’t have to pay any fees to anyone for such help.

If someone approaches you to say that they will pay your missed payment and takes care of your mortgage payments, you just pay them monthly rent for a year or so then you can buy your house back from them. They will ask you to sign over the deed to your house to them. Some of the scam artists will collect money every month from you and will not pay your mortgage to your lender. If the house forecloses because of non-payment of mortgage by them, it’s your credit which ruin because you are still on the loan. So, beware of these scam artists. Consult with your attorney before signing any documents with anyone for this kind of options.

If someone approaches you to buy your house directly from you and offer their service to negotiate with your lender to buy the house, be careful because they want to buy for lower price (way lower than market price) and if they don’t get their price then they will walk away at the end without buying your house and by that time, it will be too late to save your house from foreclosure or ask any professional realtor to sell your house.

My advice is that if you decide to sell your house then work with a realtor, who can work for you to sell your house and negotiate with your lender professionally to avoid foreclosure. Look for a realtor who has experience in closing short sale or trained/certified short sale specialist to sell your house.

If you have any tax realted questions then consult with CPA or tax attorney and if you have any legal questions then consult with real estate attorney.

So, beware of all these forecelosure rescue scam artist, always consult with professional when you need any advice or help.

If you have any questions or would like my assistance to sell your house then please call me at 510-366-9405, I would be happy to assist you.