foreclosure help scam

Samantha · Posted: Thu Jun 15, 2006 12:11 pm Post subject: foreclosure help scam

Rising interest rates have resulted in an increase in foreclosures in the United States in the recent years. One reason is that homeowners who bought their homes four to five years ago with adjustable rate mortgages are unable to afford the payments with hike in interest rates. Many of these homeowners are forced to surrender their houses as a result.

With the situation like this, several companies, offering foreclosure help, have come to the forefront. Getting allured by their advertisements, homeowners approach them in a desperate attempt to save their house. Unfortunately instead of getting their house saved in most of the cases it is found that homeowners lose their properties to these companies. Such scam has increased considerably in the country today.

The companies investing in foreclosure help are often found to approach the borrower on their own. They take a note of the borrower's address, amount owed in mortgage and the value of the property from the notice given to the latter by the mortgage company or the county. The borrowers in a desperate attempt, quit claim their properties to these companies who pay off the outstanding amount for them and allow him to stay in their own house as a tenant. The type of offers given by these companies may also vary.

After the companies get the ownership rights, they charge borrowers an unreasonable rent which the latter are unable to pay and they are forced to leave their houses. Borrowers must be cautious of these kinds of companies and must not take such steps which apparently look to be an easy one in saving the house.

Even when a borrower faces a foreclosure, he/she should contact the lender first. In many cases the lender tries to find out an alternative mode of payment for the borrower because a foreclosure is the last thing that a lender would prefer to do. So it always wise to consult the lender first than discuss the matter with a stranger who can prove to be a danger to the borrower.

jameshogg · Posted: Thu Jun 15, 2006 5:02 pm Post subject:

These scam artists place ads in the local newspapers and target the borrowers facing problems in making their payments for some reasons.

They act as rescuers and pay the loan amount on behalf of the borrower. In exchange they get a deed signed from the borrower to have the ownership rights on the property with a promise to rent the home to the owner. They even assure the borrowers to return the home to them once the owner gives the money back to them.

But in practical after a few days the owner gets evicted from his home and loses the home to these companies.

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Across the country, the law enforcement officials are also struggling with increasing number of frauds related to foreclosure cases.

One of my friends who is an attorney at Fl, and specializes in real estate fraud was telling me that there has been a dramatic rise in victims of foreclosure recently.

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