If you’re having trouble making your mortgage payments or you’re on the verge of foreclosure, you’re likely under a great deal of stress. Between the bills piling up and calls from lenders, it’s easy to feel overwhelmed with the foreclosure process.
Unfortunately, this is also a time when untrustworthy businesses and individuals begin to prey on those who are going through foreclosure. And while they often say they can offer an easy fix, they will all too often leave you in a worse situation.
Even if selling your home may be your best option, scammers often lure you in with the promise of staying in your home. Here’s what you should know what to watch out for if these companies come calling.
If a company tells you they can guarantee to stop a foreclosure on your home, the chances they are a foreclosure scam is extremely high. The truth is, no company other than your lender can make you a guarantee on saving your home from foreclosure.
While it may be possible to reestablish mortgage payments and save your home, the process involves cooperation from you and your lender. If the lender doesn’t agree to new terms or make allowances on the past due balance, the foreclosure process will continue.
Many foreclosure recovery scams involve charging you outrageous fees for their services. Yet, many of their services can often be done by the actual homeowner, without the expense these dishonest companies charge.
Depending on your situation, you may even be able to get free assistance from HUD-approved counseling agencies or reputable government programs. You may be able to work directly with your mortgage company instead of paying someone else to do it. In some cases, you may be able to work out terms that are a win-win for you and your lender.
One of the more common tactics foreclosure recovery businesses use is the rent-to-buy scam. This is when a company or individual offers to buy your home well below its value, then allows you to stay in the home while you pay rent that supposedly goes toward an eventual re-purchase.
These “deals” not only involve you handing over your title to the company, but the rent is often so high that buying back your home is next to impossible. Not to mention these businesses sometimes raise the rent over time to make it unaffordable, then evict you when you’re unable to make the payments.
A rule of thumb for homeowners: beware of surrendering your title to any company who makes these kinds of promises, no matter how convincing they might be.
Another common foreclosure recovery scam involves asking a homeowner to sign documents for a new loan that will make your existing mortgage current. However, these documents may include language that gives your home’s title over to the untrustworthy company.
Sometimes referred to as “rescue loans”, this scam offers hope in a dire situation, but really turns out to be bad news for the homeowner.
Other Warning Signs
Here are a few more things to watch out for with foreclosure recovery scams:
· The company offers to negotiate directly with your lender or tells you to stop communicating with the mortgage company
· The company instructs you to stop paying your mortgage without warning you that it may cause you to lose your home or hurt your credit
· The company says they can get you approved for a loan modification, when only your mortgage company is able to grant this opportunity
· The company pressures you into signing documents you haven’t read or offers an incentive for signing quickly
· Most importantly: You find that the company has a bad reputation online after reading reviews from former clients, or there’s very little record of them existing at all
If foreclosure is looming or you’re already in the process of losing your home, Buy Every Home can make you an offer in as little as 48 hours. Once we’ve made you an offer, we can usually complete the process in one week, no pre-approval necessary.
Fill out our online assessment now or call (888) 959-3442 to get your home sold quickly.
We buy homes in foreclosure
GET AN OFFER NOW