Idaho Foreclosure Fraud Rising
Last year, more than one million Americans lost their homes to foreclosures. Most of these foreclosures stemmed from the subprime loans which defaulted under the increasing interest rates and sluggish housing market. But as the number of Idaho repossessed homes rise, so is the number of owners who have become victims of foreclosure fraud.
Owners who are late on their mortgage payment for more than 90 days will inevitably receive a notice of default which will signal the start of the foreclosure process initiated by the lenders. Upon receipt of the notice, many owners panic and try to look for a way out of losing their homes to foreclosure. Because of the time element involved, some home owners turn to foreclosure rescue companies who miraculously appear at their moment of need.
These foreclosure rescue companies work by offering owners with a new loan that could pay off the existing mortgage debt. Naturally, the loan does not come without any string attached. Owners will have to pay a higher than standard interest rate and will have to agree to the other payment terms and conditions that these companies set.
Some of these foreclosure rescue companies ask owners to sign over the title of the properties as collateral. Unfortunately, many owners fail to realize that they should never do so. Once a title is signed over to another person or organization, then that property is considered to be theirs to keep until they decide to sell it. Transferring titles should only be done in conjunction with a sales transaction.
Owners who do this find themselves evicted from their homes because of one reason or another. The point is, these foreclosure rescue companies should never be trusted completely. Owners should investigate the legitimacy of their operation and should never ever agree to transfer the title of the property to them.
