Foreclosure Scams Distressed Homeowners Must Avoid
In the last couple of years, the entire nation has been suffering from the effects of the enduring foreclosure crisis. With the housing market brimming with literally millions of homes in some stage of foreclosure, it is not surprising that there is also a growing number of foreclosure-related scams being reported nationwide.
The individuals, who perpetrate these foreclosure scams, usually target distressed homeowners who are quite desperate to solve their mortgage problems. In most cases, they immediately believe anyone who will offer them an easy solution to stop foreclosure. These troubled borrowers do not stop and think about these offers are oftentimes, ignore the warning signs.
The most common of all foreclosure scams involves a promise that all your foreclosure worries will disappear in exchange for a small upfront fee. But as soon as this fee is paid, the individual disappears without a single trace – leaving you alone to face foreclosure once again.
Some scam artists go to the extent of setting up a fake “lease and buy back” agreement. You will be asked to transfer the property’s title in the scammer’s name but still stay on as a tenant. After a certain period, you can choose to buy back the property. Of course, the scam artist will only borrow heavily against the equity you have left in your home and as soon as there are none left, these unscrupulous individuals will disappear. Avoiding these foreclosure scams is actually easy. You just need to be vigilant whenever a suspicious person approaches you, offering a simple solution to your mortgage problems. Many housing advocates have always insisted that distressed homeowners discuss their problems with their lenders or legitimate foreclosure counselors.
Even if it seems that what these scam artists are offering are quite irresistible, you should consider the fact that most of them will tell you that you do not have to do anything in return. That alone should trigger warning bells in your head since there is no such thing as “no strings attached”.
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