7
Foreclosure Scams
Foreclosures are a
matter of public record, and therefore a home owner in foreclosure will
be targeted by con-artists and companies offering to
"help". These scams vary from offering to
"negotiate" with the lender for a nominal fee to offering to help out
by reinstating the loan, taking title and leasing the home
back. People facing foreclosure are vulnerable but can avoid
being taken advantage of.
Here are just a few
'scams' you should take notice of:
Short Term
Loans. Most of these loans
have a high interest rate or require a balloon payment. These
loans add more liens to the property and if you fail to pay you are
foreclosed on again.
Realtors
Wanting To Share in Your Equity.
These "pre-foreclosure specialists" offer to reinstate the
loan
and sell the house to save you the equity and appreciation
you
have built up. The catch is that the home owner has to split the
earnings with the agent..
Investors
Wanting to Take Your Equity. An ethical
investor gives every effort to help you save your home and equity for
you. Only then does the investor offer to buy or take over your house.
Debt
Negotiating/Counseling Agencies.
Many of these types of companies offer to negotiate or consolidate the
debt for you but you must prepay for these services. They
don't
do anything you can't do on your own or that non-profit
agencies
will help you with for free. If you need help contact your local Consumer
Credit Counselors.
“Financial
Services” Companies.
Con artists posing as a financial services company offering assistance
with tax advise, debt management, real estate sales and pre-foreclosure
sales. Most do not run legitimate corporations (according the Arizona
Corporations Commission) and are not legally licensed as required by
the Arizona State Banking Department for debt or credit counseling.
Letigitamte companies can show you a licence and do not ask for payment
up front!
"Government
Employees" The lender, the County, and the Federal
government will not send out personal representatives to assist you
unless you have initiated the call to the right agency.
Bankruptcy.
No matter what an attorney may tell you, bankruptcy only suspends the
foreclosure process. Bankruptcy does not stop foreclosure.
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