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Avoid Foreclosure Prevention Scams

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By : M Shane    99 or more times read
If you are facing a short sale or foreclosure, you may be looking for every way out that could possibly exist. It's natural to want a ‘miracle solution' to come to pass, but many ‘miracles' are only that for the person trying to con you out of your money, your property or both.

Rule #1: Never Let Go of Your Home or Power of Attorney

Never give someone you don't know or don't trust the authority to do with your home as it pleases them. Until foreclosure is completed, it is still your home and you may still have a chance to legitimately reclaim it. Do not believe anyone who claims that they or their good credit can miraculously restore your home to you at an affordable price. No legitimate foreclosure help will ever ask for you to sign over these things.

Rule #2: Beware the Helpful Stranger

Someone who comes soliciting your business should be looked upon with a cynical eye. Also, verify with your lender the identity of anyone claiming to be representing your lender. Anyone who is genuinely interested in helping you will be telling you to communicate regularly with your lender to resolve your loan issues. Stay far away from anyone who wants you to cease all contact with your lender. Drop anyone who starts pressuring you, especially if it has to do with giving them money or power over your home.

Rule #3: Don't Pay Top Dollar for Advice

There are counselors who will give you your options for free, if you can demonstrate that you are in a cash bind. There are also housing counselors who charge you a fee, but whose services are clearly outlined and easy to verify. Stay away from people who want to charge you thousands of dollars up front; if your loan is being refinanced or changed in some ways, costs are added up at the closing of the loan. Shop around for prices and consult the Better Business Bureau to see if a company or individual has any complaints against them.

Foreclosure can be a terrifying thing to face, but you are better off working with your lender and a legitimate housing counselor who will at least tell you the truth instead of holding a grain of hope out in order to get your money, property or both. For more information about your options, explore HUD's (US Department of Housing and Urban Development) housing and foreclosure advice at

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