Foreclosure Scams

Those who are facing a foreclosure are often tempted by many companies who promise to stop the foreclosure if only you will sign one document. These companies are actually trying to get your money or take your title away from you for making a profit for themselves.

Remember that when promises feel like they are way too good to be true, it is probably a scam. These people have advertisements all over the Internet. So when you are searching for ways to get out of foreclosure, you need to stay away from these frauds.

They will often tell you to hand the house over to them and live as a tenant until you can buy back the home. But you will actually lose your home because no company will let you buy back a house once you have given it away to them.

Do not accept a loan if someone offers you refinance options when not even your own lender will allow you to borrow money. Remember that no other genuine lender will lend you the money if your own lender will not lend it to you.

These scams will often tell you that they have secret ways of stopping foreclosures that no one else is telling you about. It is most definitely a lie because your lender, whoever it is, does not want to foreclose on you. All they want is to make your loan current or somehow recover the principal amount. So remember that you need to discuss your options with your lender openly if you want possible ways to keep your house.

Do not pay someone cash upfront for stopping your foreclosure. All your extra money should be used for paying the mortgage. It does not matter what kind of promises they make, it is impossible for anyone to guarantee that the foreclosure will be stopped. Only the party that is making the foreclosure, i.e., your bank, can give this guarantee (and that will of course never happen).

There are no charitable organizations that donate money to people who are facing foreclosures. There is no one on this earth who will give away money to strangers just because they want to help. They will always have hidden reasons for lending you money. So get rid of any such ideas and do not believe it even if someone tries to convince you otherwise.

Do not pay a company who promises to talk to your lender on your behalf. No intermediate company can talk to your lender and make the foreclosure go away. Your lender will give you options and you will have to choose the option that suits you best.

Some companies might tell you that the transfer of title is only temporary but do not be convinced by them. Every such deed that you sign and notarize is final and binding. You will lose your house and you might still be responsible for paying the mortgage.

The truth in such cases is that there are no quick ways to stop foreclosures. So if you find any such scams, report them to the authorities immediately.