| Companies
that advertise guarantees to halt foreclosure, makes you want
to pick up the phone and call them for help. There are many
that talk of exaggerated claims just want your money, and have
no intention in helping.
In order
to protect yourself from these predators, you need to be aware
of their schemes. Below are some methods scammers use to hook
you into their programs for foreclosure rescue:
* Exaggerated
Messages - They are initially able to hook clients with exaggerated
messages that when no other company can help you avoid foreclosure,
they can. Keep in mind, if the message appears too good to
be true, it is.
* Upfront
Fees - Scammers typically ask for a fee upfront. This is against
the law in the United States. The Federal Trade Commission
(FTC) provides thorough advice on what foreclosure and debt
assistance companies can do. Asking for upfront fees is not
one of them. Do not pay for any services from a foreclosure
rescue or debt management company until they have rendered
services.
* Rescue
Loan - The foreclosure scammer presents what you think are
new loan documents that bring your mortgage current. You sign,
but what you've done is turn over the title of your home to
the scammer. In exchange, you've actually acquired a rescue
loan.
* Rent-To-Own
- This can sometimes be a lawful option; however, it typically
never works to the homeowners' advantage. What happens is
a company requires you to sign over the title of your home
to them and you pay rent to them for a specified period of
time, usually within a year. They promise to let you buy back
the home at a specified amount at the end of the rental period.
Your credit has been trashed by default or foreclosure, even
though you've been "rescued" by the company you
are dealing with. You sign over the title of your home and
now, a year later, your credit rating is so low you can't
get a loan to purchase back your home.
Most banks
and mortgage companies do not give out home loans until two
years after default or foreclosure. With scammers, however,
they will sell your home without your knowledge, and you will
then be evicted by the new owners. Or, the scammer will raise
the rent over time, so that you cannot afford it. You make
several late payments or are unable to pay and you are then
evicted.
You do
not have to hire a company to mediate on your behalf in order
to avoid foreclosure. At the first sign that you are struggling
with your payments, contact your lender. Have all your financial
information in front of you, including all your debts, income
and assets. If your monthly mortgage payments are over 31
percent of your income, you might be able to find relief.
|
