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Foreclosure Scams: How to Recognize and Avoid Them



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By : Jacquelyn Marks    99 or more times read
It is often too easy to be sucked into scams. When faced with grave distress and hope is being lost and desperation is beginning to surface, people will seek help from just about anyone who offers. Unfortunately, many people are not who they claim and cannot provide what they promise.

There are ways to avoid becoming a victim to fraud. Sometimes they are easier than one would have originally had thought; sometimes they are not so obvious and professionals are better judges of what is legitimate and what is not. When faced with scams of receiving help to save a home from going into foreclosure, it is crucial to not take everyone’s word for honesty.

The goal for a scammer is to convince their potential victims of their services by telling them what they wish or need to hear to help better their situation. Unfortunately, the victim of the scam is often left off in more financial distress than before.

Thankfully, there are ways to recognize these red flags and strategies of protection against becoming a victim to these people. To help the homeowner, there are protection services readily available.


Mortgage Assistance Relief Services

The Mortgage Assistance Relief Services (MARS) made it illegal for any company to ask any fees from the homeowner until the homeowner has officially received an offer of relief. It is also common for the homeowner to receive this relief from their lender. A benefit to this service is the homeowner is not obligated to pay any fees until the results they receive are to their satisfaction.


The Federal Trade Commission

The Federal Trade Commission (FTC) is a leading protection agency that serves the homeowner. They help the homeowner recognize scams by addressing the invalidity of their approach.

The scammers take on a variety of approaches, the most common being that of using brief messages. This is in an effort to “butter up” their possible victims. They do this by saying they are with the government or your lender.

From there—or not—they give outrageous promises, such as “Stop foreclosure now!” or “100% money back guaranteed!” These messages are brief to capture attention. Once attention is attained, the scammer provides a series of sales pitches, making their service appear to be better the more they talk about it.

They do this until their victim finally—and unfortunately—gives them money. This is when the FTC appears because they will help people protect themselves from losing their money to scammers.


Seeking Legitimate Help

If messages are received that seem too good to be true, they often are. Thankfully, not everyone is out to hurt others that result in home loss. There is help available that is both legitimate and legal. The best option for a homeowner to save their house from going intoforeclosure is to contact their lender. From there, they can receive help figuring out payment plans that will help their financial situation instead of hindering it.
Foreclosure.com is the leading provider in nationwide foreclosure listings search.

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