Watch Out For Scams If You're Going Into Foreclosure

---

If your home is going into foreclosure, you may be set up for more financial problems if you're able to be scammed easily. And that's where elderly retirees become vulnerable.

Those retirees with a mortgage probably have a lot of equity too. That equity can help them save their home or at least leave them with some money if foreclosure goes through to completion. If you can't make your mortgage payments, your bank will begin foreclosure proceedings against you.

So if you're having problems paying, contact your lender. He can offer you ways to keep your house - or ways to give up your house without going through foreclosure. You should avoid foreclosure because it'll ruin your credit rating.

At the same time, check your local housing counselling agency. Make sure it's government-approved. It probably has free information on organizations that can help you out.

*Foreclosure scammers are ready to pounce on uninformed homeowners:

When your mortgage company notices you, it also files your foreclosure notice with a public trustee. Your foreclosure notice then winds up in the foreclosure listings in your local paper. It's from these listings that fraudulent foreclosure-related companies become aware of your circumstance.

They'll call you directly to say they can help you. They generally call themselves foreclosure specialists or consultants. But they're interested in taking advantage of your predicament to make quick money for themselves while leaving you in a worse financial situation. Always check out the credentials of any organization you consider working with. Here's how a few foreclosure scams work

*Equity skimming or stripping::

They'll convince you to sell your property to them at less than fair market value but promise to pay off your mortgage for you. They'll have you transfer the deed to them, move out of your house, and stop communicating with your lender.

Then they'll either rent out your home to collect rent and not pay your mortgage off. You, of course are still obliged to pay it off- not them. Or, they'll sell the property quickly, pay of the mortgage and keep whatever equity they can.

*Fraudulent Lenders:

Here, a lender will offer to get you a loan though he knows you're in financial trouble. He suggests you lie about your income to qualify. You get the loan which may help you pay off your mortgage, but the new loan is too much to keep up with. So the fraudulent mortgage company forecloses on you fast to grab what equity it can from you.

*Phony Foreclosure Counsellors:

These agencies offer their services with high fees. But all they do is make simple phone calls and complete paperwork that you can do yourself - or with a little help from a legitimate agency.

So be aware of these scams so you can recognize them and avoide them. Seek help with your local housing counselling agency

---

---

Comments? Questions? Email Here

© HowtoAdvice.com