Beware of Home Foreclosure Scammers

You are facing foreclosure. You are feeling desperate. Someone offers to help you. So far, this scenario sounds great, right. Wrong. There are people out there who will prey on your difficult situation and take the opportunity to steal your home right from under you. They are foreclosure scammers. This is how they work.

"Sign Your Home Over to Me" Foreclosure Scam: They may represent themselves are religious organizations, or charities, but they are nothing of the sort. In short, they tell you they can negotiate your mortgage for you if you sign over the title of your property to them, rent your own home from them. Do not do it! This old scam has been around for many years. Your home is now legally theirs. Whether you pay on time or not, eventually they will find a way to evict you and keep the home for them to use as a rental property or to sell to someone else.

Equity Skimming Home Foreclosure Scam: Some representing himself or herself as a buyer offers to repay your mortgage or sell your property for you if you sign over the house to them. You sign over the house and move out. They keep the house, and you keep the debt. Never sign over your home without being paid for it first.

Counseling Agency Home Foreclosure Scam: Many companies will offer to help you negotiate lower mortgage payments in exchange for a "small fee". They take your money, and do little, if anything to help with your financial situation. Instead, of using such a service you should contact "a HUD-approved foreclosure housing counseling agency toll free at (800) 569-4287 or TDD (800) 877-8339 before you pay anyone or sign anything." (HUD)

Temporary Financing Home Foreclosure Scam: A "mortgage company" offers a temporary refinance that will allow you stay in your home, or time to sell it. This may relieve the pressure of being several months behind. However, it is just a matter of time before the homeowner is in trouble again because the "new mortgage" has higher payments than the previous loan.

Your house means everything to you, but for others, it is a part in a game.

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