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Foreclosure Scams

 


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Are you a victim of a foreclosure scam? More and more companies claiming to help people beat foreclosure are popping up everywhere, and unfortunately, many of them are just scamming their victims out of thousands of dollars and not doing a thing to help them.

Recent evidence shows that foreclosures across the country are on the rise. This is mostly due to the generous lending practices of mortgage companies everywhere. In the past few years, mortgage companies made it easier for people to buy a home with very little needed to qualify. Many bought homes under interest only payments for the first few years with the anticipation that they would be making more money later and could afford the increase in a mortgage payment.

Unfortunately, reality is that they didn't get the increases in pay needed to cover the new interest plus principal payment. They fell behind in payments to the mortgage company. This led to foreclosure proceedings. This also invited in the foreclosure scam artists.

One example of this is of a family in Ohio who had been paying their mortgage for years. When they fell on hard times, the bank started to threaten to foreclose. The family started to get flyers in the mail from foreclosure companies that could help them and prevent a foreclosure. The family paid the $1200 and waited.

The foreclosure company was supposed to stay in contact with the mortgage company and negotiate a settlement/pay plan that would keep the family in their home. This never happened. Instead, the company took the money and disappeared. The family had to figure out another way to fix their problem.

So, what are some signs to look for?

  1. Be wary of anyone who says they can stop foreclosure for a flat fee and letting them do the rest.
  2. Be wary of anyone who advises you not to contact an attorney or call the mortgage company.
  3. Be wary of unsolicited contact. Mortgage information is readily available to the enterprising criminal.
The absolute best way to help yourself out of a foreclosure is to contact your lender right away and discuss options with them. They stand to lose money if you foreclose. They would rather you get your payments caught up.

Home foreclosures are on the rise. Looking for more information regarding foreclosure? Interested in taking advantage of foreclosed real estate and maybe making some money legally? Check out this great link. . .

http://www.squidoo.com/houseforeclosure

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