Foreclosure Predators and Frauds
As if things weren't tough enough already for those dealing with a looming foreclosure, here is another fly in the ointment.
Before the ink is even dry on the notice, the sharks begin to swarm.
A borrower in trouble will often be a prime target of scams and frauds that attempt to separate them from their money.
Where They Lurk Scam agencies can be found anywhere.
Ads in the paper, flyers and online are all used to catch the unsuspecting - or vulnerable - eye.
Agents will comb through the foreclosure lists looking for an ideal target.
They are trying to take advantage of the borrower's nervousness and desperation.
Typically they contact the owner directly and promise to help get him out of the foreclosure plight.
They prey on emotions - particularly panic - counting on the homeowner's inability to think clearly.
The Skim Scam One popular scam that homeowners get sucked into is known as Equity Skimming.
An agency offers the homeowner its skills to settle with the mortgage lender and sell the property.
They promise to give the owner a lump sum share once the property is sold.
The owner is expected to sign over the deed and move out.
If they choose to stay, the agency will charge rent.
Often the agency will rent the property to another party.
Then they don't pay the lender, and the property still forecloses.
If the agency does sell the property they may pay off the debt - perhaps not.
They will also pocket whatever profit was made.
The outwitted homeowner won't see a penny of the money he could have generated selling it himself.
The Bankruptcy Act Another scam that promises to help borrowers sounds quite legitimate - on the surface.
The agency promises to negotiate refinancing for the homeowner and settle the debt.
The hint of scam is when the cheat requires the mortgage payments to be made directly to them.
Sometimes the owner will be asked to sign away the deed and pay rent to the agency.
This is all done with the promise that the default loan is being settled.
The agency, of course, doesn't follow through with their "guarantees.
" The scamming company will then file for bankruptcy without the owner's knowledge, disappearing shortly thereafter with whatever money they were able to extract.
The mortgage lender will never have been contacted at all! Since the homeowner is unaware of what is going on, he then misses out on any participation in the bankruptcy case, thus losing any claim to refunded money.
Adding insult to injury, the borrower will also wind up with a bankruptcy note on his credit report.
Be wary of anyone offering a quick and easy way out of foreclosure.
Many of these agencies are counting on your desperation and willingness to trust those offering help in times of need.
You know the old saying, if it sounds too good to be true.
Before the ink is even dry on the notice, the sharks begin to swarm.
A borrower in trouble will often be a prime target of scams and frauds that attempt to separate them from their money.
Where They Lurk Scam agencies can be found anywhere.
Ads in the paper, flyers and online are all used to catch the unsuspecting - or vulnerable - eye.
Agents will comb through the foreclosure lists looking for an ideal target.
They are trying to take advantage of the borrower's nervousness and desperation.
Typically they contact the owner directly and promise to help get him out of the foreclosure plight.
They prey on emotions - particularly panic - counting on the homeowner's inability to think clearly.
The Skim Scam One popular scam that homeowners get sucked into is known as Equity Skimming.
An agency offers the homeowner its skills to settle with the mortgage lender and sell the property.
They promise to give the owner a lump sum share once the property is sold.
The owner is expected to sign over the deed and move out.
If they choose to stay, the agency will charge rent.
Often the agency will rent the property to another party.
Then they don't pay the lender, and the property still forecloses.
If the agency does sell the property they may pay off the debt - perhaps not.
They will also pocket whatever profit was made.
The outwitted homeowner won't see a penny of the money he could have generated selling it himself.
The Bankruptcy Act Another scam that promises to help borrowers sounds quite legitimate - on the surface.
The agency promises to negotiate refinancing for the homeowner and settle the debt.
The hint of scam is when the cheat requires the mortgage payments to be made directly to them.
Sometimes the owner will be asked to sign away the deed and pay rent to the agency.
This is all done with the promise that the default loan is being settled.
The agency, of course, doesn't follow through with their "guarantees.
" The scamming company will then file for bankruptcy without the owner's knowledge, disappearing shortly thereafter with whatever money they were able to extract.
The mortgage lender will never have been contacted at all! Since the homeowner is unaware of what is going on, he then misses out on any participation in the bankruptcy case, thus losing any claim to refunded money.
Adding insult to injury, the borrower will also wind up with a bankruptcy note on his credit report.
Be wary of anyone offering a quick and easy way out of foreclosure.
Many of these agencies are counting on your desperation and willingness to trust those offering help in times of need.
You know the old saying, if it sounds too good to be true.
