Scam Alert: Look Out for These Foreclosure Scams
Every legitimate business suffers and is plagued with a prevalence of imposter fronts otherwise known as scammers and the real estate business is no exception. These scammers seem to have a knack for targeting people with mortgage repayment problems, which is why it is important to stay vigilant. Listed below are a few pointers to help you figure out foreclosure scams.
1. Where advance fee is required:
If any businessperson or organization reaches out to you with claims of having the ability to save you from foreclosures or secure a new mortgage while first insisting on an advance payment — that is a red flag! No standard organization requires an advance, so please take note of this.
2. Signing sketchy documents:
Before you sign any document, always request to read it in its entirety. If there are clauses you do not understand, you reserve the right to acquire the assistance of an attorney. Never attempt to sign any document with blank spaces because once your signature is affixed, you are bound by all terms whether you had actual knowledge of the content or otherwise. The truth is you might have been scammed into taking a new mortgage with double the value of the previous mortgage, making it almost impossible to buy back your home. Worst still, what you may have agreed to is a deed of transfer transferring ownership of your home to the scammer.
3. Overly attractive offers:
Another angle may come from offering an easy way out of mortgage payments and foreclosures. This is often a complete rip off and the only guaranteed way of getting past a foreclosure possibility is by offsetting mortgages. Further, some of them might claim to have the ability to compel your lender to cancel or modify your loan due to “mistakes” they can find in the loan document. This is a lie because as long as the loan document is valid, it is not possible for a lender to modify loan requirements simply because of mistakes in your loan documents. Also, cancelling your loan could mean forfeiture of your entire mortgage and subsequently losing your home. Your best course of action is to contact your mortgage company directly.
4. Repurchase scams:
Here is how this works, you would be required to “temporarily” hand over the deed to your house to a third party while still living in the same house, but as a licensee/tenant instead. The catch is that a one-off payment would be made to offset your mortgage and fix your credit score. The problem here is if the third party is a purchaser without notice of your title to the house, it may become almost impossible to get back your title to that house. Remember, if it looks too good to be true, it probably is! Always involve your legal and financial advisers including your mortgage company before taking important decisions.
If you are considering foreclosure, you need the guidance of a licensed, experienced attorney. The pro bono attorneys at the South Florida Debt Relief and Education Foundation are here to help. Contact us today for a free consultation.
