Protect yourself From Foreclosure Scam Artists

When you are facing foreclosure and looking for help to avoid losing your home, you need to be careful. There are many corrupt individuals just waiting to pounce upon you and take advantage of your misfortune. They advertise themselves as foreclosure “rescuers” or “experts.”  Before you realize it, they will acquire your property without a formal or recorded purchase for a fraction of what it would have brought at sale. Without recording any change of ownership they will try to rent your property to another unsuspecting person while you remain legally bound to make the mortgage payments. The mortgage company is unaware that anything is wrong and you are left on the hook to pay the mortgage on a house you no longer possess and upon which you do not receive rentals.

Most homeowners lack adequate knowledge about foreclosure, their legal rights, and alternatives to foreclosure. Beware of scammers who promise rescue from foreclosure.

There are mainly three categories of foreclosure rescue scams:

The Phantom Help

The Bailout

The Bait-and-Switch

In Phantom Help: the so-called rescuer will charge fees for light-duty phone calls or paperwork you can easily do yourself. None of these phone calls or paperwork actually results in saving your home. It just gives you a false sense of hope and prevents you from seeking qualified help.

In a Bailout: the rescuer deceives you into signing over title with the belief that you will be able to remain in the house as a renter and eventually buy it back over time. The actual terms are so onerous that the buy-back becomes impossible, you lose possession and the rescuer walks off with the right to sell and possess without the costs of foreclosure.

It is important at this point to stress that you DO NOT SIGN anything without consulting an attorney, no matter what these scammers tell you.  If the deal is so good and so beneficial to you it will be just as good tomorrow or in a few days after you have had sufficient time to read the document and seek legal advice.  Any deal that sounds too good to be true, is too good to be true.

In Bait-and-Switch: under the guise of having you sign documents to bring your mortgage current, the rescuers will cause you to surrender your ownership. The documents appear to be temporary loans.  They will do this in a sneaky way that you will not realize that you have been scammed until you are evicted.

When you are faced with foreclosure, you do not have much time to react. This can lead you to make hasty decisions without consulting others. Scammers almost always highlight the lack of time and insist that you make quick decisions. They then pressure you for a quick signature on documents that you have not been given adequate time to read.

The initial contact typically revolves around a simple message and frequently contains a “time is of the essence” theme, adding a note of urgency to what is already a stressful and possibly desperate situation. Once you fall for the trap and decide to move forward with the rescuer, you will be promised a fresh start at the initial meeting and they may also provide you with testimonials of other homeowners they claim to have rescued. They will then instruct you to cease all contact with your lender and allow them to take over. Any time you cease all contact with your lender, it is dangerous. It cuts off access to your options and you can quickly run out of time to prevent foreclosure.  By the time you realize what is happening, it’s too late and you have been conned.

Scammers will do everything to cut off a homeowner’s access to correct information. They win the homeowner’s trust and warn the homeowner to stay away from attorneys and counseling agencies, ironically on the grounds that the attorneys and agencies are “out to make money from the homeowner’s misfortune.”

Once it is too late to save your home, you will have been drained by substantial heavy fees and other charges. If a deed was signed on fraudulent promises, you, the homeowner, will then be evicted by the “rescuer” from the property you once owned.

Always be suspicious of anyone who offers you “bargain loans,” whether they mail, fax or e-mail an offer to you, call you on the phone, or come to your door. Never fall for promises of “No Credit? Bad Credit? No Problem!” and offers that are only “good for a very short period of time.”

Here are some of the promises that scammers will make:

•  We buy houses: instant cash.

•  Cash for houses: any situation, any condition.

•  We’ll get you a new mortgage with low monthly payments.

•  We’ll help you file bankruptcy to stop this foreclosure.

•  We’ll save your credit.

•  We’ll pay your first month-to-month rent,

    or payments in your new place.

•  You will get several thousand dollars in cash back

    that you can use any way you want.

•  If you sign the house over to us, the foreclosure

    will be recorded against us, not you.

•  We’ll buy your house “as is.”

•  It will cost you thousands more if your property

    is sold at auction.

•  We guarantee we’ll find you a buyer in seven days.

 Do Not Sign Anything without consulting an attorney.  

For more information see www.EraseForeclosures.com.

Bankruptcy – Thinking bankruptcy to avoid foreclosure? Think again

The average people will probably think that filing for bankruptcy is a solid way to avoid foreclosure.
Bankruptcy is a legal representation of a person’s inability to pay and settle his debts. This may be due to a couple of personal reasons like unforeseen medical expenses, divorce, death in the family, loss of job and others.  

Foreclosure on the other hand is when the mortgagor is unable to make the necessary payments at the time set by the lender. This gives the lender the right to assume ownership of the property and recover some of their losses through the money earned when the property has been sold or auctioned off.
Basically, bankruptcy does not stop foreclosure from happening. Filing for bankruptcy does not stop the lender from repossessing your property. It only allows a slowdown of the foreclosure process. This gives you time to pay your mortgage loan, making it easier for you to pay the lender eventually.
Here is how filing for bankruptcy can help slow down the process. The lender is required to suspend foreclosure action when the mortgagor files for bankruptcy. This will allow some way for the mortgagor to raise money and pay his loan. And because this action will allow discharge of some unsecured debts, the mortgagor may priorities his mortgage payments instead of paying his other debts. Chapter 13, a court ordered payment plan, states allowance for the mortgagor to pay the loan and catch up with the amount over time.

However, not everyone can actually qualify for filing a bankruptcy case. And even if you do qualify, you must take into consideration the legal costs and fees involved in this process. The amount you pay these legal fees may certainly be used to pay off your mortgage instalments.

The possible drawbacks of this option would raise some wide concerns over the mortgagor’s recent credit rating. Filing this would have a great effect in one’s credit history and would probably lessen the likelihood of qualifications for credit in the future.

There are also the risks of facing an unscrupulous bankruptcy attorney who will not strive to help foreclosure victims as best they could. There are several cases of homeowners who spent their hard-earned money in order to pay for the process of filing for bankruptcy and the lawyer simply did nothing with it. Eventually their properties have been foreclosed just the same. Other attorneys give advice to clients so that they continually switch from a Chapter 13 to a Chapter 7 with the hopes of having their clients pay more in legal fees whenever they file a new status. If you really would like to take this option, then it is important that you be careful with the lawyers you are dealing with. Look for attorneys who will act at your best interest and not scam you for your money.

Remember that filing for bankruptcy will not change your situation. Looking for other options first with your lender may help you more than immediately settling for a new status. It will be best that you consult with friends and family and research further before taking this step.

Procedure to be followed for avoiding foreclosure

1) Do not close the eyes to the problem:

If you find difficulty in making your mortgage payments, call up or contact the mortgage company right away to avoid foreclosure. If you wait or ignore the problem, you will find it difficult to give your loan back.

2) Communicate with the lender:

Lenders do not need your house; they just need their payments to be made in time. When you realize you won’t be able to make payments, you must discuss your financial situation with the mortgage company. By analyzing your situation the lender company will allow you a short term financial relief. This will help you in saving money for the payment of your mortgage loan.

3) Be aware of your mortgage rights:

Locate your loan documents and scrutinize what your lender can do if you are not in position to make your mortgage payments. Revise about the foreclosure laws and time limits in your circumstance by getting in touch with the State Government Housing Office to avoid foreclosure.

4) Contact a housing analyst:

The U.S. Department of Housing and Urban Development (HUD) offers free of charge counseling nationally. Home counselors will help you to be aware of the law, how to control your finances and stand for you in negotiations with your lender, if you wish for such support from them.

5) Be concern of your spending:

After health care, defending the residence should be one’s main concern. Evaluate your funds and recognize where you can slice up your expenditure in order to make payments of your mortgage loan. A specialist gives an opinion to delay payments on credit cards and other debts in anticipation that you pay off your mortgage payments to avoid foreclosure.

6) By means of your personal possessions:

If you have your own possessions which can be changed into cash, then make it done and use that cash to pay off your mortgages. If this tough work doesn’t add to your income, then disclose to your lender that you are agreeable to make some surrender to have your house and avoiding foreclosure.

7) Be alert of system followed

One must not lose his home to foreclosure-revitalization scams. If any firm announces that they can keep you away from foreclosure by need for you to sign a document which will sign up them to do something on your behalf, this may at times direct you to transfer the ownership of the possessions to the company in nonattendance of correct knowledge of the deal to the proprietor and you will become a tenant in your own house! One should not get into any contract or signing any documents without ample knowledge of the scheme.

Avoiding Foreclosure Rescue Scams

Although the housing market is in dire straights with pending foreclosures, this is one time where you will need your wits about you to make a clear and sound decision for foreclosure prevention solutions. The marketplace is flooded with scam artists waiting to capture desperate prey that will sign on the dotted line for an urgent loan modification. Be sure you explore all your possibilities at the first sign of financial distress, and follow a few tips to avoid the loan modification scams.

1. No Telephone Prospecting

According to FBI statistics, the loan modification companies that approach the client with a telemarketing call have the highest incident for scamming and identity theft. Never give your personal information to someone over the phone, unless you initiated the call and know who you are talking to. In some cases, the caller may be from a legitimate office, and you may check that by getting their name, address, and phone number. If the office is local to your area, you may wish to pay them a visit, rather than doing business over the phone.

2. Read The Fine Print

Before signing any document, be sure to ask many questions until you are fully satisfied with the answers. Unscrupulous loan modification providers often slip a notation at the bottom of the contract that requires a hefty non-refundable deposit or retention of the up-front payment. Some states, such as California, does not permit the loan modification company to cash the client’s check until the services are completed with success. The Department of Real Estate mandates that each firm hold the client funds in a trust account until the loan modification is complete. In such cases whereas the loan mod could not be performed, the DRE ensures the client will get a 100% refund. Check with your state board of real estate for laws and restrictions to protect the consumer, and only do business with loan modifications firms that comply.

3. Check Credentials

Before entering into contract with a loan modification firm, be sure to check for a business license and any track record of complaints. The Better Business Bureau offers online services to gather information on a company and such free services can save you time, energy and money in the long run. If you are in doubt over a loan modification firm, see your local real estate or loan broker for some options. The loan professionals are licensed by the state and subject to disciplinary action should they be negligent in their duties. However, many of the loan modification companies that are not tied to a real estate office have sprung up from nowhere and have no proven track record of their performance. In some cases, an attorney may be your best option if you believe you will benefit from a bankruptcy, rather than a restructuring on your existing loan.

4. No Guarantees

Although there are many qualified loan modification providers, its important to steer clear of the companies that make false claims and promises. A cunning loan modification representative will tell the anxious clients exactly what they want to hear, irrespective of facts and circumstances. A loan modification firm may assert that they will make every effort to contact a lender to reduce your mortgage payments, however, they cannot make a guarantee of the outcome of their services. If the loan modification rep tries to guarantee that your new payments will be in the price range you have in mind, walk away. Mitigating factors such as credit, new income level and more are applied to each individual case, and not every loan modification applicant may be approved. Your income level must be verifiable that you can handle the new payments, and in such cases as a job loss or income reduction, a new bank may decline the loan.

5. HUD.GOV

The Department of Urban Development, HUD, has an informative website to educate the distressed homeowner with mortgage counseling, loan modification services and preventive measures to avoid foreclosure. Each state is represented on the site, although procedures and policies may vary across the country. Many of the HUD services are free or offered at a nominal fee, and can be trusted to put the homeowner in contact with internal or external support services.

How to Spot a Foreclosure Scam Company

The ongoing mortgage crisis means that the number of foreclosures is increasing. With homeowners desperate to avoid foreclosures, there are many scams flourishing that prey on those homeowners that desperately want to hold onto their homes. How do you know if an offer for assistance is legitimate? Often it doesn’t take anything more than old fashioned common sense. Sometimes, however, scam artists are so misleading that it is easy to be confused.

What are the warning signs that a foreclosure company may be a scam?

Lack of professionalism. This one should be obvious, and, fortunately, many scammers fail to present themselves as professionals, and are easily recognized. Think of how most established businesses advertise. If a company does not use traditional advertising, it should raise a red flag. If you find fliers under your windshield or stuck in your door, someone cold calls your house, or knocks on your door, they are probably not a legitimate agency.
They ask for large fees in advance. It is a testament to how desperate people are to save their homes that many people, in danger of losing their homes, will pay an exorbitant amount of money to someone they have never heard of that promises to save their home. Often, the scammer asks for a fee that is equal to the homeowner’s equity in the home, and the homeowner hands it over.
The company asks you to sign your deed over to them. They often have excellent reasons for this, promising to sign the home back over after they stop foreclosure proceedings, and allowing you to “lease” the home from them until this occurs. Not only does the scammer get the deed to your home, which, by the way, does not release you from responsibilities on the loan, they also collect a hefty “lease” fee, at least until they evict you.
They offer to help you refinance the home. You obtained your mortgage initially, why would you need help to refinance? Typically, the scam company collects a large fee and does nothing. While they do not take over ownership of your home, like some of the more aggressive scammers, they do allow the foreclosure process to proceed. The foreclosure scam companies typically tell you not to contact your lender because they will take care of all communications. Meanwhile, they do nothing, and the lender assumes that you are a deadbeat payer.
They tell you one thing, but discourage you from reading the contract. People who are successful at operating scams are often smooth talkers. They will tell you one thing, such as negotiating a settlement with your lender, while at the same time presenting you with papers that sign your home over to the scam company.

How can you avoid being a victim of scam foreclosure companies?

Never sign anything without reading it thoroughly. Do not worry about appearing rude. Read each form completely and do not sign anything that you do not understand. Tell the person you are dealing with that you need to take the paperwork home to review it and show it to a real estate attorney. They will normally review documents for a nominal fee, and can tell at a glance if you are being scammed.
Understand that verbal agreements are non binding. Do not pay attention to what the person says, but read all documentation carefully.
Never sign a form that has multiple blanks that can be completed later, and sign your paperwork with blue, not black, ink. This helps prove that paperwork is an original and not a copy.
Never, ever, sign your deed over to anyone else. Many people fail to realize that the mortgage and the deed are two separate things. You do not eliminate your responsibility with the mortgage by signing over your deed, but you do eliminate your claim to the property.
Any threats or intimidation should be clear evidence that the foreclosure company is not legitimate.
Before entering into any agreement regarding your mortgage, take the paperwork to your current lender. They do not want you to be scammed any more than you do, and they are well versed in current scams in your area. Even if you are in the final stages of foreclosure, and feel that the lender has no time for you, ask to speak with someone in the loan or loss mitigation department and show them the documents.
Remember the same thing that we all learned as children, if something is too good to be true, it probably is.

Foreclosure scams prey on the fear that people have of losing their homes. While there are legitimate companies that help the consumer who is experiencing difficulty paying their mortgage, companies that solicit you are typically scams. To find someone that can help you remain in your home during this difficult time, contact your local HUD office. This federal program offers a variety of ways to deal with your financial problems while avoiding foreclosure. Your lending institution’s loss mitigation specialists can also work with you to keep you in your home.

Mortgage – How to avoid mortgage scams if you are heading into foreclosure

Foreclosure is a serious problem and is prevalent in many places in the United Sates. People who face foreclosure are in the brink of losing their property as a result of not being able to pay their mortgage on time. This problem is usually urgent in nature because the more time is spent without proper action the more like is the forfeiture of property going to happen. There are legal measures to stop foreclosure and it requires certain processes. Knowing the proper process will save you from a lot of trouble. It’s one of the measures to avoid being scammed and a very good one. The best way to know the right process is to consult an expert. Just make sure you’re talking to the right person who can give you the right information. Here are some facts that you may need to know to avoid mortgage scams.

A foreclosure is legal action by the lender when a borrower defaults in payments of a loan secured against a property. When the foreclosure takes effect the lender can sell the property and the proceeds is used to pay for the mortgage. Foreclosure process follows a schedule of legal actions wherein the borrower is given a chance to do something to prevent repossession of the property. There are various legal remedies offered by lawyers and loan experts to impede the process of foreclosure.

At this stage of foreclosure many mortgage scams are surfacing. The debtor at this point may become desperate to avoid losing their property and so will believe whatever remedial action is offered. It would be better to discuss the problem with your lender. They may be able offer the best remedy for the prevention of foreclosure. The best time to contact your lender is before the foreclosure process starts. You may also want to talk to a lawyer or housing counselor to make sure that you are not going in the wrong direction.

To avoid mortgage scams, you have to avoid companies that offer services for a fee. The amount you will pay to these people may as well be used to settle the obligation that will prevent foreclosure. Foreclosure companies may have a good intention for you but the fee they collect is an additional burden. There are free services available that can offer effective solutions for your problem. Mortgage scams hides in the guise of a Good Samaritan who would offer help but the reality is that they are after whatever they can get from your ignorance.

Avoid signing documents without carefully examining its content. You may already be giving away your property to scammers. They may ask you to sign a processing paper that allows them to act in you behalf. At the end of the process they may already own the house and you can’t do anything about it because you consented. Crooks are becoming more creative in their style of deceiving people. You will never have to deal with them if you talk only to people you can trust. There’s a way to check company or individual profile that will expose the motives of the people you are dealing with.

Loan Modification – 5 Things To Look Out For And avoid Being Scammed

Loan modifications have been used in a variety of ways to alter the conditions on a troubled mortgage. In some cases loan modifications could prove to be advantageous and some cases not. Here are five signs to look out for getting a modification on your home loan to avoid getting scammed.

1. The Guarantee – Be very aware of loan modification guarantees made by loan modification company, saying that they can help you stop the foreclosure process and save your home. The truth is that no one knows if your current lender is willing to participate in the loan modification process. Every lender is different and a guarantee to modify a loan could simply be a tool to lure you to make a payment, when in fact nothing will be done to help you save your home.

2. Upfront Fees – As every media outlet is being bombarded with new loan modification deals, it easy to see a lot of offers that might seem genuine, and in most cases sound like a great offer, in fact so good that the companies could ask for an upfront fee to get the modification started or that the fees will help lock in the terms for the amazing offer. While the service may seem like it’s legit and will be to your advantage, in most cases it will not benefit you. Beware of upfront fees.

3. Sign Now To “This offer is for a limited time” – Make sure you take the time to read every document, never let anyone persuade you into signing loan documents simply to take advantage of a great deal. The truth is that once you sign a document, you become committed to whatever that document says weather it benefits you or not.

4. Too Good To Be True – If the terms of the mortgage modification being offered sounds too good to be true, then in most cases it is. In most cases if a bank decides to modify a loan, they’ll lower the rate or loan amount so that your mortgage payments are at the maximum you can pay for. Banks will be very hesitant and careful when looking at you debt to income ratio to determine the maximum amount of money you can pay for your mortgage while it’s still affordable to you.

5. Too Little Information Needed – The necessary paperwork to process a loan modification is extensive. In most cases the bank doing the modification will need income, debt, savings, credit, and other vital information to get a better picture of your ability to pay back the loan. If a loan modification company tells you that it’s a fairly easy process, this is a clear sign that you might be heading towards being scammed.

I hope these 5 tips can help you when choosing to do a loan modification. Remember that there are plenty of loan modification companies out there and you do not need to go along with the first one you see.

How To Avoid Foreclosure – 3 Genuine Solutions

Foreclosure almost all cities to stop the United States, it is usually only a few legitimate opportunities. Some of them know, and some are completely new to you.

Here are some directions, you can:

* Sell your house before the closing auction. The value of this concept is very vary depending on the type and quality of local real estate market. If you’re in the market, which is still very low resale prices, selling your home can be a challenge. Ask a local real estate agents determine the average number of days on the market for property in your area.
* To launch a loan changes. The way of loans changes by which your lender changes its terms of payment of debts due to your ability to pay. Although it is not a guarantee, loan changes became popular in the last 12 months.
* Refinance real estate. If you are not fully closing process, it is reasonable to assume it will go in their payments, it may be reasonable to try to Refinance their mortgage lower. If your property is worth less than the mortgage balance, you’ll want to ask a short Refinance, “which is when a lender forgives part of the debt against you, that you Refinance their property and carry the rest of the debt you owe.

When trying to stop the closure, is the key to fast action.

Warning: Be very wary of people who aggressively try to buy a house for investment purposes. Although many legitimate real estate investors had a large amount of fraud “Stop Foreclosure” scams, and it is reasonable to be very careful.

Note: the crisis in the face now will come up. While the closure of survivor myself, I would like to encourage you to remain dependent, and we understand that your future is not equal to last!

Tips for Avoiding Foreclosure

Foreclosure is a big concern for not only the home owner, but for the nation too. Foreclosures in this country are hitting record numbers and continuing to increase every day. According to Irvine-based RealtyTrac Inc. there were a total of 224,451 foreclosure filings reported in October, up 94 percent from 115,568 in the same month a year ago. I have put together several tips to help you not become one of these statistics. I am not a foreclosure expert but from the research that I have done following these steps will keep you in your home and your home out of foreclosure.

• Don’t ignore the problem

• Contact your lender as soon as you realize that you have a problem

• Open and respond to all mail from your lender

• Know your mortgage rights

• Understand foreclosure prevention options

• Contact a housing counselor

• Prioritize your spending

• Use your assets

• Avoid foreclosure prevention companies

• Don’t lose your house to foreclosure recovery scams

If you follow these steps you should be in the clear from losing your house. At least this way you can be better prepared if you run into any problems. You need to know that your lender doesn’t want your home so they should be willing to do all they can to work with you. They would rather keep you in your house and making payments. People usually get overwhelmed with stress just make sure to try and stay on top of everything.

Avoid Foreclosure

There are troubled waters ahead for property owners, and there are sharks in those waters.  In times like these there is always someone around ready to take advantage of the situation, and of you.  More homeowners today than ever before are experiencing mortgage payment hardships.  Many are unable to make payments because of an income loss due to the economic down turn, or because they have an adjustable rate mortgage and the rate has increased and they can’t make the much higher payment.  Plus, in many markets real estate values are falling and owners are finding that they owe more than their home will appraise for, and are unable to sell it.  Car dealers call this being “upside down.”

In this kind of environment it’s easy to fall victim to the many money-making scams that abound today.  One of these schemes is to approach homeowners who have fallen behind on their payments through ads or research and offer programs to help the homeowner avoid foreclosure.  The persons involved will meet with the homeowner and offer to deal with the lender for the homeowner.  The homeowner is then asked to sign quite a bit of paperwork, including signing over the deed to the property.  They offer to take over the property even though you may owe more than it’s worth, and they ask the home owner to sign over the deed so that they can deal with the mortgage company and the homeowner can stop worrying about it.  Some even imply that the owner’s obligation ends when they sign the deed over to them.

In many states you can deed your property to someone even though it has a loan (mortgage) on it, without obligating the buyer or person you sign it over to, to pay the mortgage.  This means you are still obligated to pay the debt or loan on the property.

Most mortgage loans today have a “due on sale clause” in the mortgage agreement, and when you sign over the title to someone else it activates that clause.  The balance owed on the loan is now due in full.  So, if you weren’t in foreclosure before, you probably will be now.  You’ve signed over your property to someone and move out, thinking that you can get on with your life.  The new “owner” rents out your home and starts collecting income.  He may or may not (most likely will not) talk with your mortgage company.  Some do, they make promises of payments to stall off foreclosure and collect more rent.

Most mortgage companies take about six months before finalizing foreclosure, and in today’s world this time frame has been stretched out to a year or more.  When the loan is foreclosed on, some of these guys just disappear, after taking 6 months or more rent, sometimes thousands of dollars, from the unsuspecting tenants.  The tenants often get a rude surprise by receiving an eviction notice from the new owners, your mortgage company. 

There are others who work this scheme that may, with your deed in hand, negotiate and offer to pay off your loan at a price far below your loan balance, which your lender may accept.  Now when that happens, more often then not you are still on the hook for the difference between what the new owner paid your mortgage company and your loan balance, plus any late charges and attorney’s fees that have accrued.  Even worse, you may owe the IRS taxes on that difference as income. 

So be very careful when dealing with anyone who offers to take over your problems, you may be creating a real nightmare.  It is far better when trying to avoid foreclosure to try and renegotiate your loan yourself or use your own attorney.  There are refinance programs available, with more coming, that will refinance your loan even if your credit has gone bad.