Spot Foreclosure Rescue Scams

Most of us learned growing up that taking advantage of people who are struggling or “kicking them when they’re down” is unfair and unethical. However, the sad truth is that plenty of people try to do just that. Many good people whose homes are facing foreclosure are taken advantage of by foreclosure rescue schemers every day.

Some warning signs to notice

There are several warning signs to let you know that you are getting involved in a rescue scam. If it sounds too good to be true, consult with a bankruptcy lawyer before going any further. If a schemer advises you not to discuss the deal with a lawyer, you should run away quickly. If someone is asking you for money just for a consultation and not for an actual go-between or filing service, you should take your hard-earned cash elsewhere. Don’t sign over your property to someone else without receiving just compensation for the equity you paid into it. Be wary of roadside signs and other informal advertisements.

Common types of foreclosure rescue scams

The three most common scams are:

• Lease-buyback. With a lease-buyback scam, you sign your property lease over to someone else while paying a lower rent on the property, often with an option to buy the lease back with a lower mortgage rate. However, the buyback price may be set so high that you can’t afford it.
• Equity stripping. You sign over your mortgage loan to someone else, again for a temporary buyback arrangement. However, the schemer then charges rent, fees or other excessive payments that may eventually force you out of your home.
• Consultation services. If a firm offers to renegotiate your contract with a lender, be concerned if they don’t seem to have any legal legitimacy. They may charge you a fee, encourage you not to contact your lender, and then simply sit on the money you gave them.

What to do if you are facing foreclosure

Schemers are always out there. It is up to you to research and stay alert. While there are some legitimate foreclosure rescue methods, they generally require the assistance of a qualified lawyer. Contact Harold Shepley and Associates today for help modifying your loan and staving off your foreclosure!

By Harold Shepley | Published July 19, 2012 | Posted in Debt, Financial Distress, Foreclosure | Tagged debt relief scams, debt renegotiation, equity strip, foreclosure scams, lease-buyback, pennsylvania bankruptcy lawyer | Leave a comment