How to Spot a Foreclosure Scam

According to most recent reports many Americans who have trouble meeting their mortgage payments are being latest victims of “foreclosure rescue” or “foreclosure prevention scam”. Though the exact number of foreclosure scam victims is hard to measure, mostly because the offence is collocated with other types of fraudulence, and many cases go unnoted and unreported.

The Federal trade Commission has provided guidelines regarding how to spot a foreclosure rescue scam. Here are some tips for people facing foreclosure, to look out for, to avoid being a victim of foreclosure rescue scam.

• Foreclosure Prevention professionalism: Fake foreclosure counselor or agent may contact you and state that he can negotiate a deal with your mortgagee or financier to save your real property from being foreclosed if you first pay the processing fee.

• Claims to halt foreclosure immediately: Beware of any foreclosure rescue company making such claims because no foreclosure rescue company or agents can stop foreclosure instantly. If you are being asked to sign documents in appointing the company to represent on your behalf, the best way is to stay away from such offers. Never sign any document unless it’s reexamined by your own lawyer, an independent and trusted real estate professional.

• Bankruptcy-foreclosure scheme: This scheme involves an imposter assuring you that he will negotiate with financier and if necessary will refinance the property on your behalf if you pay a fee up front. The imposter, instead of actually contacting the financier or refinancing walks off with fee and may file bankruptcy case in your name without your cognition.

• Lure and temptation: Landowners in distress are deceived into signing over fresh mortgage Documents or deed to their home. As it is the part of re-financing scheme. Never sign any new mortgage deed or document unless it is reexamined by your own trusted attorney.

• Request to sign a quit claim deed: You may be postulated to sign a quit-claim deed as a part of “rescue plan.” This is a permanent designation of your rights and privileges in the property to another party. Don’t sign a quit-claim deed unless your lawyer or legal representative advices you to do so.

About Author:
Pauline Go is an online leading expert in real estate law. She also offers top quality articles like:
Unfair Eviction & Property Line