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Nov 09

How to Identify Foreclosure Scams

loan modification scamsAfter the mortgage crisis,  so many foreclosure scams came up along with scam artists and fraudulent companies that saw an opportunity to take advantage of struggling homeowners. Homeowners facing foreclosure are already under a lot of stress, and are extremely vulnerable to scams. With the recent state of economy, coming up with short term or long term solutions seems impossible, and that’s when  scam artists strike. In this blog, we will discuss three tell tale signs that will help you identify a foreclosure scam.

1. When Someone Promises to Take Over Your Mortgage

When you sell your house, your mortgage isn’t automatically transferred to the buyer. The loan stays in your name, and you are responsible for paying it off. Mortgage scam artists will promise to keep making payments in your name, and may appear to you as saviors. However, don’t be surprised if you start receiving collection notices after some time.

If you are facing foreclosure and have a few buyers interested in the property, do not be content at promises alone. Have your attorney involved in the process. Only you are responsible to pay your loan and someone promising to take over the mortgage is most probably a scam artist.

2. When Someone Asks You to Sign the Deed Over

If someone asks you to sign over the deed, assuring that you could stay in the house while they would take care of the mortgage, they are scamming you. First of all, the deal appears too good to be true, and secondly, they will ask you to evict the property within a couple of weeks if you sign over the deed. Do not sign any document without having read it, and make sure you have legal representatives involved to help you understand the fine print.

If a company offers to bail you out, make sure you understand the terms and conditions of your agreement or you will end up losing your house to them instead of the bank.

3. When Someone Asks You to Make Payments to Them instead of the Lender

Some loan modification scam artists would tell you that you can make payments to them and they will pay off your lender. They will offer you lowered rates and will guarantee that you will not have to worry about foreclosure again. Do not make any payments to anyone other than your lender. If a company asks you to pay them instead of the lender, you are being scammed.

These signs will help you detect scam artists from miles away. You can also contact Amerihope Alliance Legal Services for further queries and a free consultation. Our loan modification attorneys and foreclosure defense attorneys would be happy to advise you on your current situation.

1 ping

  1. Trial Modification and Refinance Can Lead to Foreclosure

    [...] is where legal representation comes in. We have previously discussed the importance of not signing any documents that you haven’t read and that have not been explained… However, if you have signed such a document and are facing foreclosure, all is not lost. Several [...]

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