Tired of handling your mortgage payment problems all by yourself? Perhaps you’ve been desperately searching for a solution that doesn’t involve losing your home to foreclosure but don’t really know where to turn for help. Someone knocks on your door and introduces himself as a ‘foreclosure rescue counselor.’ You are astonished by the coincidence and are more than willing to hear him out. He presents you with professional-looking credentials and glowing testimonials from prior clients who’ve been rescued from similarly desperate circumstances thanks to his efforts. He tells you exactly what you want to hear-

“I’ll get you a second mortgage with lower monthly payments”

“We’ll buy your house as it is”

“I’ll save your credit”

“If you sell the house to my company, the foreclosure will not be recorded against you. It’ll go on our records”

He might seem like a godsend sent to bail you out of your distress. In all likelihood though, the person is probably an experienced scammer who is only out to steal your money, your home, or both. The ‘bail out’ foreclosure scam is one of the most popular scams that con artists pull on unwary homeowners. It’s extremely easy to trick a homeowner into signing away the deed of their house, simply because their offer sounds so reasonable.

The person might tell you to sell your house to them at a very cheap rate while reassuring you that it’s not a real sale. They are quick to point out that it’s only a temporary measure designed to buy you time until you get your finances in order. You are told that you’ll be able to stay in your own home as a renter until you’re ready to buy it back from the company, with a little interest at the end of a pre-determined time period. They say they’ll relieve you of your financial distress and help you save your home from foreclosure while making some profit in the process as a rescuer. You get to live in your own home, improve your credit and buy it back when your situation improves. Sounds like a win-win for all doesn’t it?

The truth is that it is possible to save your home this way if you do get help from an ethical legitimate company. A genuine company will charge a moderate fee or might negotiate for a portion of your home’s equity in exchange, or will include some interest in the buyback price for their role in the rescue. It’s a reasonable trade since the company is using their good credit to get a second mortgage that bails you out of your desperate situation and temporarily holds the deed for you. A person who knocks on your door though and makes such an offer is probably up to no good. You need to seek out a reputed company and do a thorough background check before agreeing to such an offer. You might end being ruined otherwise since its possible to lose your home, your home’s equity and still be liable for your mortgage payments simply because you unwittingly agreed to a fraudulent deal.

So seek out an ethical foreclosure rescue company. There are many resources that will help you find a legitimate outfit. The hallmarks of a fair deal include-

1) Complete written and verbal disclosure. The company will give you copies of all the documents.

2) The contract will specify favorable terms and conditions that you can actually meet.

3) A reasonable pre-determined fee for the rescuer.

You can buy your home back if you do strike a workable deal. Make sure to go through all the documents word by word and get it thoroughly checked out by your lawyer before you sign any contract.