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Connecticut Senator Warns Homeowners Against Foreclosure Scams

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By : Cassiano Travareli    99 or more times read
If you are a homeowner facing foreclosure, you should be cautious when it comes to any foreclosure rescue operation that promises you an easy way out of your mortgage problems. In Connecticut, the number of foreclosure-related scams has risen dramatically during the last couple of years as the state struggled with a foreclosure crisis.

For this reason, Senator Bob Duff (D-Norwalk) has issued a warning against foreclosure scams and specifically reminded homeowners not to easily believe the false promises. With lenders publishing notices before the actual repossession of the property, it is not surprising that these scam artists are having an easy time finding targets. For this reason, homeowners should be extra careful when dealing with these suspicious individuals.

Aside from the popular “upfront fee”, these scammers also employ tactics that will involve the transfer of the property’s ownership to them and draining it of all equity. Foreclosure rescue operations usually entice distressed homeowners by offering instant solution to their mortgage problems in exchange for a fee.

Although there are legitimate foreclosure rescue companies in the country, most state governments have already passed a legislation that prohibits these companies from asking for upfront fees.

As for the troubled borrowers, it is not recommended that you transact with a foreclosure rescue company without having discussing with your lender other options to stop foreclosure. In case of uncertainly on how to go about the negotiation, there are nonprofit organizations that provide free foreclosure assistance to distressed homeowners.

Aside from foreclosure counseling, the counselors could also act as mediators between the lenders and borrowers, helping the latter negotiate with either a new repayment plan or a loan modification. In any case, the chances of stopping foreclosure are improved.

On the other hand, legitimate foreclosure rescue operations usually involve a re-financing program but with interest rates that are above the usual average because of the greater risk to the company.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.

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