Stay Safe by Avoiding Home Foreclosure Scams

Written on December 9, 2009

Stay safe by avoiding home foreclosure scams. When a home foreclosure is imminent, it’s easy to be swayed by last-minute offers or promises to save a home. However, it’s important to realize that there are a number of home foreclosure scams that will only make the problem worse. Avoid scams by knowing what to look for and what to avoid.

Foreclosure Specialist Scams Targets People in Danger of Losing Their Home

In one home foreclosure scam, a “foreclosure specialist” will visit homeowners and claim they can save their homes if the homeowners sign over the deed to the house. The specialists claim that they will negotiate with the mortgage lender on the homeowners’ behalf to avoid foreclosure. Unfortunately, these criminals will evict the homeowners once they have ownership of the deed. Proving that someone was a victim of the foreclosure specialist scam can take months or years in court, while costly legal fees continue to accrue.

Phony Foreclosure Con Artists Claim They Can Help Homeowners

Another type of foreclosure con involves companies that convince homeowners to turn over their home ownership to the company to save their home. The foreclosure companies offer to lease the home back to the customer and promise them an opportunity to buy back the home in the future. This foreclosure con is especially appealing to homeowners as it allows them to stay in their homes while they earn the money to regain home ownership. However, the lease to own option doesn’t come to fruition and the foreclosure company takes ownership of the home.

Foreclosure Counselors Charge High Fees, Don’t Save Homes

In another variation of the home foreclosure scam, someone claiming to be a foreclosure counselor offers to save a home if the homeowner pays an expensive one-time fee. After the homeowner pays, the “counselor” takes off with the money, leaving the homeowner in even worse danger of home foreclosure than before.

Avoid Foreclosure Scams with Tips to Stay Safe

Before dealing with anyone claiming to be a foreclosure counselor or specialist, find out more about their credentials. Check references and ask about association memberships and licensing. State licensing can be verified, usually online, and association memberships and references can be verified with a couple of phone calls. Foreclosure counselors, specialists or consultants usually only charge a small fee or no fee to help homeowners avoid foreclosure. Being tapped for a hefty fee is a sure sign that it’s a scam.

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