Don't Become A Victim Of A Foreclosure "Rescue" Scam

The possibility of losing your home to foreclosure can be terrifying. The reality that scam artists are preying on the vulnerability of desperate homeowners is equally frightening. Many so-called foreclosure rescue companies or foreclosure assistance firms claim they can help you save your home. Some are even bold enough to offer a money-back guarantee. Unfortunately, once most of these foreclosure fraudsters take your money, they leave you much the worse for wear.

Fraudulent foreclosure "rescue" professionals use half-truths and outright lies to sell services that promise relief and then fail to deliver. Their goal is to make a quick profit through fees or mortgage payments they collect from you, but do not pass on to the lender. Sometimes, they assume ownership of your property by deceiving you, the homeowner. Then, when it's too late to save your home, they take the property or siphon off the equity. You've lost your home to foreclosure despite your best intentions.

If you think you may be facing foreclosure, the Federal Trade Commission (FTC), the nation's consumer protection agency, wants you to know how to recognize a foreclosure rescue scam. And even if the foreclosure process has already begun, the FTC and its law enforcement partners want you to know that legitimate options are available to help you save your home.

How the scams work

Foreclosure rescue firms use a variety of tactics to find homeowners in distress: Some sift through public foreclosure notices in newspapers and on the Internet or through public files at local government offices, and then send personalized letters to homeowners. Others take a broader approach through ads on the Internet, on television, or in the newspaper, posters on telephone poles, median strips and at bus stops, or flyers or business cards at your front door. The scam artists use simple and straight-forward messages, like:

"Stop foreclosure now!"

"We have special relationships within many banks that can speed up case approvals."

"We can save your home—guaranteed."

Red Flags

If you're looking for foreclosure prevention help, avoid any business that:

• Guarantees to stop the foreclosure process – no matter what your circumstances

• Instructs you not to contact your lender, lawyer, or credit or housing counselor

• Collects a fee before providing you with any services

• Accepts payment only by cashier's check or wire transfer

• Encourages you to lease your home so you can buy it back over time

• Tells you to make your mortgage payments directly to it, rather than your lender

• Tells you to transfer your property deed or title to it

• Offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale

• Offers to fill out paperwork for you

• Pressures you to sign paperwork you haven't had a chance to read thoroughly or that you don't understand.

Where to Find Legitimate Help

Foreclosure Prevention Counseling can help you avoid foreclosure. At InCharge Debt Solutions, our certified counselors work one-on-one with distressed homeowners to find options and solutions. Call us today to learn your options or visit our housing counseling page.

(Source: www.ftc.gov)