Foreclosure Scams and How to Avoid Them

Are you a homeowner who is facing possible foreclosure? 

If you are, you could literally be completely desperate.  You may be willing to try anything to save your home.  Of course, you are urged to do anything (legal) that you can, but it is important to not let desperation get in the way of common sense. 

Homeowners who do often find themselves the victims of a foreclosure scam.

When it comes to foreclosure scams, the best way to protect yourself is to know what to look for. Although foreclosure scams come in a number of different formats, many are easy to spot.  One rule of thumb is the old adage:  If it sounds too good to be true, it probably is.

Let's look at a few possible foreclosure scams you might encounter.  Realize, however, that these are only representative, and crooks not only rework the old reliables but invent new ones as well.

"We're Here to Help You!"

One type of scam that you will be on the lookout for is when an individual or a company approaches you offering to help.  When doing so, they often will offer to provide you a loan.  The only problem with this is that a "loan" is not what you may be getting.  The documents which you eventually sign may actually turn over ownership to the individual or company in question.

However, what often happens is that you end up agreeing to rent your property back at a very high rate.  If you cannot afford to make those payments, you will be evicted from the home that you no longer own.

"Rescue Me"

Another common foreclosure scam involves having an individual or company coming to your rescue.  They do not offer a loan, but will offer to negotiate with your lender for you.  During this period, you will be asked to pay the individual or company in question, which may be referred to as a rescuer.  The only problem with this is that the individual or company hasn't been in contact with your mortgage lender at all.  What they are doing instead is pocketing your money and you will probably still end up facing foreclosure.

"The Strong Arm..But NOT Of The Law"

Similar to the foreclosure scam outlined above is one that involves strong-arming your home from you.  In this form, the individual or company in question isn’t necessarily after your money, but is more interested in the property itself.  They will instruct you not to contact anyone for help, aside from them.  You are instructed not to speak with a lawyer, not to talk to or make payments to your mortgage company, and so forth.  Right before the foreclosure proceedings start, the scammer will then take every step possible to get your home..and they are good at it. 

A Crook is a Crook is a Crook

One mistake that you will not want to make concerning foreclosure scams is believing that the individual standng in front of you, offereing to save your home, is different.  Desperation and despair can cloud one’s judgment.  If you are presented with a contract or legal document to sign, do not do so until you can have it reviewed by an attorney. 

Be sure to choose your own attorney! 

Do not rely on the advice of an attorney suggested to you, as they may be in on the scam, even if they are a real attorney!

Thes three foreclosure scams are just a few that you may run into, but they do have the potential to cause the most damage and the most heartbreak.  The good news is you now know what to look for.  This means you can avoid falling victim to these types of scams.  As a word to the wise, never agree to do business with someone who approaches you.  A reputable lawyer or advisor will wait for you to come to them.  No one who comes knocking on your doorstep is likely to have your best interests at heart.

Foreclosure scams are out there.  Typically, the only way for you to legally avoid foreclosure to speak with an attorney or to make arrangements with your financial lender. 

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