How to Avoid Foreclosure Scammers

It seems that whenever people are at their weakest, the opportunistic scoundrels seem to come out of the woodwork. The people I am referring to are the people who promise to help you avoid foreclosure--for a price. While there are some legitimate agencies out there that can assist homeowners at risk for losing their homes, most are scammers preying on people's fears and lack of knowledge of the legal system. It is not my intention to give you legal advice but rather a rational and common sense refresher in case you are facing foreclosure.

Difficulty: Moderate

Instructions

Things You'll Need:

• access to the Internet
• pen and paper
• phone

1. Try to negotiate with your lender. Even if you do not reach an agreement with your lender, at least you will know where you stand and what your options really are regarding the foreclosure.

2. Do not ever sign any document involving your home without speaking to an attorney of your choice FIRST! An experienced and reputable real estate attorney can help you make an informed decision. This can help you save lots of money and possibly your home. Most attorneys offer a free 30 minute consultation. Take advantage of this by having a list of questions ready for the attorney.

3. Do not agree to any type of partnership involving your home. This is one of the biggest scams out there. Once you sign up for a partnership, your "partner" can sell your home right underneath you through a "quiet title action." For more information about a quiet title action, contact an attorney or do some research online on this legal action. Again, never sign any type of document involving your home without speaking to an attorney FIRST.

4. Do not pay high fees to a foreclosure negotiator! There are agencies such as ACORN at www.acorn.org that will assist you for free. Remember that you will need your money to make payments to your lender once you reach an agreement with them. And if you end up selling or losing your home you will need the money for a new place to live and for moving expenses.

5. Be careful about selling your home to someone who promises to let you stay in your home. Once the title changes, you are no longer the owner.
   The new owner will be your landlord and can evict you. In some states, the eviction process can be as quick as 30 days.

6. Do not do business with anyone that comes to your door. A reputable company does not send their employees to solicit business door to door.
   This also applies to anyone who contacts you by phone or email as well. Be very careful about discussing personal information with anyone who approaches you in this manner.

7. Remember the old adage--if it sounds to good to be true, it probably is!!! Do not take the word of anyone making promises. Get everything in writing and make sure you will be able to take action against a company that does not come through on their promises. In other words, do not deal with companies that appear out of nowhere because they will disappear just as quickly!