The Experts In Real Estate And Mortgages

Foreclosure scams,prevent it from happening to you.

When a foreclosure notice appears in the local newspaper there is a chance that it could be seen by one of these scam artists.One of the forms that a foreclosure scam can take is that they will pretend to be some kind of professional who claims to have seen your foreclosure notice in the local newspaper and are there to help you in your hour of need.

Unfortunately many people in this situation are already heartbroken at the prospect of losing their home that they won’t be thinking straight and may just buy into whatever they are told without a second though.

Don’t let this happen to you. Here are some of the scams:

1.Pay us a fee and sign the house over to us. They tell you that “The foreclosure will be recorded against us, not you.” Not true because
a foreclosure gets reported against the borrowers on the note, not anyone else.

2. We’ll give you some money, just sign the house over, we’ll cure the default.
There really isn’t a problem with it, IF you know how much equity you are selling and IF the purchaser really will cure the default and IF the purchaser will really make the payments and IF you want to still be responsible for the loan. Too many IFs to be able to say this is either a good or bad option, just be careful with it.

3. We’ll buy the property, lease it to you, you have the option to buy it back.
It might have happened, but the reality is, to buy it back you’ll need a new loan that’s larger than the loan you have with an interest rate greater than what you have. The payments will be higher and it’s going to be very difficult to qualify.

You are much better off trying a short sale with the bank or a small hard money loan if you have the equity.

4. We’ll get you a new loan and solve all these difficulties.
Every time you refinance, unless you are paying fees out of pocket, your loan balance is going up which is using up your equity. Lenders can make a lot of money churning loans, you need to consider total loan amounts also, not just the monthly payments.

5. I’m an agent specializing in pre-foreclosures and I’ll get your property sold quickly for top dollar.
Some agents have a relationship with an investor and work from published Default notices. If you like this idea definitely use local agents, not national companies because you need someone that has conacts in the are, knows the neighborhood and can be at the house if you need them for open houses etc

6. Stop Foreclosure with Bankruptcy
The truth is that bankruptcy does NOT STOP foreclosure but it will put a hold on foreclosure which can allow you time to reorganize your finances. Every area has reputable attorneys who handle bankruptcies. Spend the time to find one and spend the time to know what you have to do and when.

There are several variations on the foreclosure rescue scam, but most fall into one of the following three categories:

Bailout” or “Lease/buyback” - The scammer tells the homeowner that title must be transferred to someone else with better credit, so that new financing can be obtained. The scammer also assures the homeowner that they can remain as a renter, make “lease” payments, and buy back the house at a later date. The problem: after the deed is signed away, the scammer evicts the homeowner, and the homeowner permanently loses possession and title.

“Bait and switch” - The scammer tells the homeowner that their loan will be refinanced. Hidden amidst the loan documents which the scammer instructs the homeowner to sign is a deed which transfers title to the scammer. Title is literally stolen out from under the homeowner.

If you can refinance do it yourself using a reputable bank or Mortgage Broker.

“Phantom help” - The scammer offers consultation services to the homeowner and makes grandiose promises about how he can prevent foreclosure. The scammer charges outrageously high fees but provides few if any services. The scammer gets paid, while the homeowner ends up in even worse shape than he started in.

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