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 February 24, 2009

TRYING TO AVOID FORECLOSURE? LOOK OUT FOR SCAMS!
I am sure that you have seen those ads on TV claiming to be able to avoid foreclosure on your home. While it may be tempting to call one of them immediately, you need to know that many of them not only have no intention or ability to help you avoid foreclosure, they are, in fact, after your money and possibly even your home.
Awareness of the various cons that these dishonest predators use in order to get you to take their bait and buy into their schemes can allow you to avoid being cheated.

First, in order to lure clients, they make exaggerated claims, stating that they can help you avoid foreclosure while others cannot. Remember, if their claims sound as if they are just too good to be true, they undoubtedly are.

They usually require you to pay an upfront fee, which is illegal in America. Information on exactly what debt relief and foreclosure help companies are able to due within the law is available through the Federal Trade Commission. Collecting fees up front is not something that they are allowed to do. Be certain to hold off paying for any services until they have been rendered.

Some of these charlatans actually have you sign what are presented as new loan documents for a loan that will enable you to bring your mortgage payments up to date. If you sign these papers, you have just given the title to your home to the company and have gotten a new rescue loan in exchange.

While a company may offer to set up a "rent to own" program, while it is legal, it is usually not advantageous to the homeowner. The company rents your home back to you for a specific length of time after you have signed the title on your home over to them. They agree that, at the end of the rental period, you may buy back your home for an amount that is specified. Meanwhile, your credit rating has been ruined via default or foreclosure despite the fact that you believe that the company has rescued you. At the end of the rental period, your credit rating is so poor that you are unable to obtain a loan in order to buy back your home from the company, which holds the title. Following a default or foreclosure, one us usually unable to obtain a home loan for at least two years. Unbeknownst to you, scammers may sell your home, in which case the new owners may evict you, or they will increase your rent until you can no longer afford it, and you are evicted after a few late payments.