How to Avoid Home Foreclosure Scams

If you are facing the terrifying threat of home foreclosure, beware of foreclosure scams. Sadly enough, there are too many people willing to profit off the misfortune of others. As a result, people in the most difficult and vulnerable of times are preyed upon by these heartless, greedy individuals who are able to make bogus, but tempting offers -- the very offers their victims want so badly to hear. Here are some cautions to be aware of to avoid home foreclosure scams.

Difficulty: Moderately Easy

Instructions

1. Always go to your lender first to see if you can find ways to stop a home foreclosure. Lenders usually will work with you to find a way for you to keep your home as they prefer not to suffer the costly consequences of foreclosure themselves. And whether you like them or not, lenders are much more likely to be honest with you than many others who may offer sweeter promises.

2. Beware any persons or organizations that discourage you from seeking the help of a lender, lawyer, or credit counselor, advising you they will handle it all for you.

3. Never trust anyone who asks you to transfer any deeds, titles or mortgage payments directly to them.

4. Beware of anyone asking for money up front before providing services and be particularly cautious of anyone asking for payments in cashier’s checks or wire transfers. These forms of payment are too easy to snatch and run with.

5. Be chary if you are asked to lease your home so you can buy it back over time or to sell your home at a fixed rate that is not comparable to the going price. You are likely to get priced out of any chance for recovery in the future.

6. Never let someone else fill out your paperwork and never sign paperwork you haven't read or don't understand. No matter how nice the person helping you may seem, READ ALL DOCUMENTATION anyway. Remember, good scam artists are good because they are believable and really do seem competent and sympathetic!

7. Don't trust anyone who guarantees to save your home from foreclosure, especially without having carefully reviewed all aspects of your circumstances.

8. If you have trouble settling with your lender, before doing anything else, please visit one of the additional Resources I've linked below. These are recommended by the Federal Trade and Federal Reserve Systems and will give you safe, reliable courses of action and trustworthy information. In a frightening time it is easy to be promised what you want to hear, but be careful of those who are unscrupulous and will make things far worse. If you do your homework and work only with reliable sources you can avoid home foreclosure scams.

Resources

• Find publications to help
• Hope Now Alliance
• Hud Information
• Forclosure resources

[psychonurse]

on 12/26/2008 Great article !
One of my favorite sayings Is "Just because you're paranoid, doesn't mean those basta---- aren't out to get you"!
5*****

[Punkuns]

on 12/26/2008 It’s sad to think of how many people try to take advantage of others when they are having such a hard time. Thank you for the valuable tips!