The possibility of losing your home to foreclosure can be terrifying. The reality that scam artists are preying on the…
Filed under Scam Alert by on Oct 5th, 2009. 
With foreclosures reaching record highs all across the country, the number of scam artists that have cropped up to con people out of their money and homes is truly alarming. The FBI reports that mortgage fraud convictions have doubled in the past year and expects an increase in the number of foreclosure rescue scams. If you are a homeowner facing tough times, it’s up to you to educate yourself on the tactics fraudsters will typically use to con you out of everything you possess. You can protect yourself from being a victim if you know what to look out for.
The only way to truly avoid being scammed out of your home and hard-earned money is to be well informed on the subject. It’s easy for scammers to throw phony credentials and fake testimonials at you while intimidating you with complex legal lingo to get you to do what they want. Many homeowners have no idea that they are being scammed, so they don’t take any legal action when they do lose out. The scammer easily walks away after pocketing your money or the equity in your home without any legal ramifications. In almost all these situations, it’s difficult for lawyers to make any type of case stick because the scammer has a stack of documents that the homeowner has willingly signed.
Foreclosure is such a scary and confusing process that homeowner’s become easy prey to con artists who know just how to take advantage of their distress. In their desperation to save their home at any cost, homeowners easily end up becoming victims of scams they wouldn’t ordinarily have fallen for and lose the home they were so anxious to save. A scammer will typically promise a homeowner a fresh new start and build up their hopes with a quick way out. Some of the popular tactics used by con artists include-
1) Offering the homeowner an option to buy back their house at the end of a pre-determined lease period, with the additional incentive of helping them acquire the financing necessary to do so.
2) Persuading the homeowner to agree to a lease agreement that they can’t really afford. Their monthly payments will typically be higher than their old mortgage payments.
3) Getting the homeowner to take out a second more expensive loan, while being fully aware of the fact that the homeowner cannot afford the new mortgage.
4) Having the homeowner transfer ownership of their house to the scammer, with or without their awareness by employing a number of strategies.
5) Persuading the homeowner to sign documents they don’t fully understand or getting their signature on incomplete paperwork. The scammer will fill in the blanks later.
All these solutions will invariably be accompanied with the sales pitch of giving you enough time to fix your finances and get your credit in order. Con artists usually find it easy to get away with it all because they ask you to follow instructions conducive to keeping you in the dark. They’ve established enough trust using a combination of lies and half-truths to get you to follow what they say without question. The advice the scammer gives you will be the exact opposite of what you should be doing.
By the time you realize that you are being conned it may be too late to stop the foreclosure.
Filed under Scam Alert by on Oct 4th, 2009.
It’s difficult to imagine people so heartless that they would prey on homeowner’s at their wit’s end trying desperately to avoid a foreclosure. The huge sums of money involved in home equity unfortunately draw the wrong type of attention. Considering how easy it is to make a quick $100,000 profit at the very minimum, it’s no wonder why the ‘foreclosure rescue’ industry attracts scam artists in droves.
You can become an unwitting target of foreclosure scams if you possess a large amount of equity in your home or if news of your foreclosure has become public. It’s quite easy for scammers to swoop in, offer their help and make away with your money or house in the process. Con artists know how easy it is to dupe people in trouble especially when they are confused and distressed about their situation.
You are a potential target for scammers if you’ve been sent a foreclosure notice and the matter has gone on public record. There’s a whole class of people who make their living off selling lists of homes slated for foreclosure. You might suddenly start getting flyers in the mail or have them stuffed in your postbox. People have reported being continually harassed by an endless slew of phone calls all day.
If you don’t succumb to the flyers or calls, you might have a friendly company representative drop by to present you with their home-saving solutions. Even if you have been forewarned, it’s hard to say no to what might look like legitimate deals presented with references and testimonials. Just keep in mind that reputed companies doing legitimate foreclosure transactions involving hundreds of thousands of dollars hardly need to conduct door-to-door marketing campaigns to get new clients.
Unfortunately there’s no way that you can stop the issue of a foreclosure going on public record. Once it’s on record it’s easy for scammers to locate you in any number of ways. The only way you can avoid being scammed is to learn to say a firm ‘No, thank you’ to any company that approaches you unsolicited with a rescue offer no matter how tempting it is.
You’ll be much better off seeking the advice of a reputed lawyer or a legitimate counseling agency. Do a little bit of research work and find a state-certified company or individual to help you. You can be sure that the help they offer is genuine and that they have your best interests at heart.
Read more on Stopping Foreclosure – Are You A Target For Foreclosure Scams?…
Filed under Scam Alert by on Sep 28th, 2009.
