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Learn About Foreclosure Prevention Scams and Spare Yourself from Being Tricked

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By : Leticia Carvalho    99 or more times read
Because of the rise in foreclosure cases, frauds have seen a new opportunity to make money. While some foreclosure prevention companies may be legitimate, others are simple scheming. They promise to save distressed owners from foreclosure but they just collect money from homeowners and deliver no service at all. Spare yourself from being cheated by knowing about the different mortgage schemes that fraudsters employ:

  • Deed transfer – the scammers fool homeowners into signing seemingly harmless documents that are actually for transfer of their property to the foreclosure rescue company. One variation of this scheme is that the homeowner is made to sign documents for acquiring a new loan. What the homeowners do not know is that they are already signing over their ownership of the property to these frauds.

    Another variation is the renter approach. Fraudsters persuade homeowners to sell their property to the rescue company and remain in the house as a renter. After a few years of paying rent, the homeowner will eventually be able to purchase the property back. However, the purchase terms in the contract are almost impossible to meet that the homeowner ends up losing the property to the fraud. In some cases, once the homeowner signs the documents, they are instantly evicted from their property.

  • Bogus companies volunteer to help homeowners in negotiating with finance companies in exchange for a certain amount. They will seek help from these finance companies to assist the homeowner through loan modification. However, these frauds do not conduct any negotiations at all. Before homeowners know it, they would have already received notice of foreclosure from the loan services.

For homeowners threatened by foreclosure, be critical about seeking help. Make sure you do it with the right people. You can ask assistance from the state Attorney General Offices. Working with an attorney guarantees that you are working with people who will actually save your property rather than steal them from you.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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