If you're facing foreclosure, you're in a painful and delicate situation. Unfortunately, there are those out there who would take advantage of you with foreclosure scams. Because foreclosures can be complex and confusing, scams can sometimes be quite convincing. And though we've all been told not to trust things that are "too good to be true," in the desperation of a foreclosure, this can be easier said than done. Arming yourself with information is the best way to protect yourself from a scam. Here are a few things to look out for and avoid.
Signing Paperwork You Don't Understand
The paperwork associated with mortgages can be quite complicated. Still, make sure you never sign documents until you understand fully what their consequences will be. Some schemes encourage you to sign ownership of your home over to someone else. You may not even be aware that is what you are signing; the schemer may claim that signing the papers will simply bring your mortgage current. However, the end result often is that you will still be evicted from your home and, as the mortgage is in your name, you will still be responsible for the consequences of the foreclosure.
In a slightly different case, a scheme may claim that if you knowingly sign over ownership, you will be able to remain in your house and pay for it over time in a more favorable arrangement than your original mortgage. This scheme often creates terms for buying back your home that ensure you will never be successful. The scammer will retain all the equity in your home and you will be left with nothing.
Unscrupulous Foreclosure Assistance
Fighting against the threat of losing your home can be difficult and overwhelming, but you do not always need all the help that scammers would like to charge you for. When you are in foreclosure, you may be contacted with various offers to help you fill out paperwork, make phone calls, and deal with your lender. The effort you would have expended taking care of these tasks yourself often pales in comparison to the exorbitant amounts you will have to pay for the assistance offered you. Make sure to evaluate carefully any services you are considering and know beforehand how much you will be charged for them.
Protecting Yourself
Above all, trust your instincts. If something to help you escape foreclosure seems too easy, it probably is. Contact your lender and explore your options. Don't be afraid to ask what your alternatives are and also what your rights are. You may be able to work out a plan with your lender to refinance your mortgage or change your existing repayment schedule. Explore our site for other alternatives to save your home.
When you need help, seek it from reputable organizations. One way to know a company is reputable is to check for an endorsement by the Better Business Bureau or other consumer protection groups. You may be in a difficult and vulnerable situation, but by learning as much as possible and trusting your instincts, you will be able to protect yourself from foreclosure scams.