Beware of Scams

If you are having problems with your mortgage and fear possible foreclosure, make sure you are careful to avoid solutions that seem too good to be true. Chances are, these solutions are in fact scams designed to prey on those who are having financial difficulties.

One of these scams is known as equity skimming. In this case, an alleged buyer will approach you and offer to help you by paying off your mortgage or paying you a sum of money in exchange for the deed to your property. The ıbuyerı will insist you move out quickly. He will then collect rent for a while, not pay the mortgage, and allow the property to go into foreclosure. This works because signing over the deed to the fraudulent buyer does not relieve you of obligation under the mortgage. You will be left holding the bag while the supposed purchaser has profited on your loss.

Also beware of fake counseling agencies. These agencies will contact you and offer to perform services for a fee. These services are almost always things you could do for yourself, including negotiating payment with your mortgage company or arranging a pre-foreclosure sale. Make sure any such counseling agency is legitimate before giving them any money or signing anything.

Some universal tips can help to avoid any type of fraudulent arrangement. First, make sure to get all promises in writing. Also, it is suggested that you avoid signing any papers you Don't understand completely. Consult a lawyer or your mortgage company if you have any questions about the legitimacy of any plan. Finally, if you are selling your house to avoid foreclosure, make sure to find out if there are any complaints against the prospective buyer. You can contact your state's Attorney General's office, the State Real Estate Division, or your District Attorney's Consumer Fraud unit for this type of information.