‘Bait And Switch’ Foreclosure Scams

If someone who calls himself a ‘mortgage rescuer’ or a ‘foreclosure rescue specialist’ has approached you, beware! People who approach you unsolicited with offers to save you from foreclosure should be viewed with extreme suspicion. The person might offer to help you out of the tight spot you are in by applying for a second mortgage or renegotiating terms with your lender. They might pressure you to sign a number of documents and not give you the time to review them properly. You’re in great danger of losing your home to a scam artist.

In this classic foreclosure scam called the ‘Bait and Switch’, homeowners are tricked into signing over ownership of their house, without their awareness. Is that really possible? Unfortunately, it’s just all too easy to pull this type of scam. These con artists present homeowners with convoluted legal papers that contain clauses transferring ownership of their home to a company or even a trust. It’s difficult even for law-savvy attorneys to understand trust agreements let alone homeowners who have little legal knowledge. Failing to get your signature might not be a setback for an experienced scammer. They’ll simply forge your signature on the deed transfer documents.

Once you’ve signed away your home, an eviction notice might be the first sign that you get of being scammed. Homeowners can spend years contesting the fraud in court, embroiled in expensive trials, while fighting to get their home back. There’s no guarantee that you’ll win your home back once you’ve signed it away. The best strategy here is to avoid falling victim to this scam. You can do that by-

1) Never signing any document that has incomplete information or blank spaces. Shysters can fill up these spaces with any information later on.

2) Never signing anything in a rush. Take time to review everything fully

3) Get everything checked out by your lawyer–Not a lawyer provided by the foreclosure specialist.

4) Getting all the agreements down in writing. Verbal agreements don’t hold up in court.

Prevention is truly the best medicine in this case. You can prevent yourself from being defrauded with a little foresight, caution and good sense. Don’t bite if a deal seems to offer a miracle. That’s the first sign of it being a scam.

Don’t also fall for any pitch that includes repairing your credit history or eliminating your debt entirely. It’s just not possible to wave a magic wand and have these things disappear from your credit history. Some scammers even throw in a free vacation or a sum of cash to sweeten the deal. Don’t give in to your desperation and sign a stack of papers, hoping for things to turn out well. Trust your instincts.

If you reached the unavoidable position of having to sell your home, remember that it’s not the end of the world. You can use the cash you receive from the sale of your home and any equity you have left in the property. This will help you to make a fresh start. Use the services or a reputed real estate firm or sell your home yourself. Being a renter once again is way better than being scammed out of your home.