How To Spot A Foreclosure Rescue Scam

As the number of foreclosures increase in the U.S. Housing Market, so does the opportunity for foreclosure rescue Report Scam and get your money back. If you find yourself in the precarious position of facing an imminent foreclosure proceeding you should be on the lookout for these scams. The worst thing you could do to yourself is to fall victim to a scam. How do I know if I am being scammed, you might ask. The purpose of this article is to paint a picture of how it might look if you were approached by a scammer.

The first thing you need to know about spotting a scam is to know what a scam is. A foreclosure scam consists of a couple of things: you , your home, and someone approaching you either in person or via mail who wants to help you. This other person is someone who wants to offer their services to get you out of foreclosure to save your home.

However, what can end up happening is that you can lose your equity if you have any to begin with. You can also end up paying a lot of money for no forwarding action that results in getting your situation cleared up. Another outcome might be that you totally lose your house to the person “helping” you and be forced to move out. And finally, you can end up with little or no time to really make a difference with your mortgage company once you find out that you have been scammed.

Imagine this scenario. You have gotten behind on your mortgage payment by a couple of months. You get a letter in the mail from your lender that informs you that they have started foreclosure proceedings. Shortly after that, you get a phone call, or someone even knocks on your front door, or a letter in the mail from a rescuer. The rescuer offers to stop your foreclosure with one phone call, they offer to buy your home, and they might tell you that you have options, or they might offer to get you some money to catch up your debt. They might even ask you to sign over your deed. The rescuer seems a little hurried or insistent to get you to meet with them because of your situation and that there is no time to waste; they are trying to show you that they care.

Let’s take the case that you decide to meet with them. In the first meeting with them they promise things like “a new beginning”, a “chance to start over”, or a “fresh start”. You might begin to feel relieved already because you need to hear something positive about your situation. The rescuer might even give you some testimonials from folks that they supposedly have already helped. True as they might be, consider that foreclosure bailout programs don’t work for everyone and why your situation.

During the initial stages of working with rescuer, they might tell you to stop talking to any lawyers, or the mortgage company to allow the rescuer to take over the negotiations etc. While this might seem like a relief to you, what you do not realize is that it sends the wrong message to your lender. It sends the message that you done trying to work things out; it will probably end up in cutting off your ability to refinance or work out a forbearance plan with the lender. It also shortens the time that you do have to save your home.

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