Foreclosure homeowner scams are real and you need to avoid them at all costs. When facing foreclosure you’re already in a vulnerable position and these scam artists know that. The purpose of the scams is to create delay, frustration and misdirection. Some of them even go as far as making you think you’re completing the loan modification process, when in fact you’ve not even started. Below we will outline some common foreclosure homeowner scams and how you can avoid them.
This downloadable content is very helpful in providing information on foreclosure scams that you should be aware of. If you are facing foreclosure there are ways to stop it and avoid it but not all ways are viable or beneficial. Loan modification, TRO lawsuit for non-judicial proceeding and filing bankruptcy are ways to slow down the foreclosure process and potentially stop it. However, you need to understand nothing is concrete or guaranteed until it is approved and completed.
Just because you file bankruptcy doesn’t mean you won’t face foreclosure again. The initial filing of bankruptcy delays foreclosure until you can go before a trustee and get an approved bankruptcy plan. You will have to keep up your current mortgage payment, in addition to the bankruptcy plan payment due monthly. Applying for a loan modification can also help but you will have to qualify and it takes a very LONG time to approve. Loan modifications are designed to drag out and cost money. Read these loan modification tips, so you’ll be able to spot a foreclosure homeowner scam and know how to avoid it!
One of the biggest ways homeowners are getting scammed is by paying “up front” fees. It is illegal in the state of California for lawyers to demand, charge or collect any up-front fees, advance retainers or pre-payments for loan modifications or any type of loan forbearance work. So if someone is helping you with this service in an attempt to avoid foreclosure and they ask for these fees, it is a violation of the law and should be reported to the Attorney General’s office. For additional information or help you can visit www.ag.ca.gov/consumers and details will be provided there.
The scary truth is when you face foreclosure your name and address are put out in a loop that investors, attorneys and people who know the industry and know where to look can find you. It’s public record because it will be a public auction. If your goal is to keep your home, then you need to ignore all the hoopla and stay focused. Consult people you trust and stay away from aggressive fliers, phone calls and the “ambulance chasers” in the industry. Don’t take advice from strangers knocking on your door who are looking to buy your home for a steal or run a foreclosure scam on you.
Talk to your bank, do your own independent research and ask the right questions. There is plenty of information out there to help you. Be mindful of time sensitive materials. Don’t sit idly by and let time pass, be pro-active. Understand the laws of your state and act accordingly. Not everything is a scam. There are real programs that will help you keep your home.
This information on foreclosure homeowner scams will help you avoid possible traps. Just remember when you’re facing foreclosure everything is time sensitive and you don’t have to face it alone. Just use caution when proceeding with any type of loan modification or bankruptcy filing.