When threatened with the possibility of foreclosure, it is easy to rush into actions without careful consideration and this can often times lead to mistakes. Foreclosure scam is a common type of fraud. People take advantage of other people especially those who are going through pre-foreclosure. You may receive a lot of offers from people you don’t know convincing you to refinance your mortgage with them for a lower interest, or perhaps offering to pay off your unpaid mortgage debts in exchange of your property and other unreasonable deals.
The truth is, there are still some things you can do to prevent foreclosure. If things come to worse, you can put your property on sale before the actual foreclosure so you can at least get some cash that can support you.
Here are some points on how you can better deal with the situation and avoid being a victim of foreclosure scams:
Watch out for companies that may offer to help you get out of the situation. They may be referred to as “foreclosure consultants” or “foreclosure specialists” but most of them are simply out to get your money. If you do need advice, it would be better to hire the services of a lawyer or go to a reputable credit counseling service. In any case, always check the credentials and background of any company you intend to seek advice from.
Speak with your lender immediately. Instead of spending your money paying for “foreclosure consultant”, you can personally try to make arrangements with your lender yourself. Explain to your lender your current financial situation and let let him know that you are doing your best to pay back your debts. However, request that some help be extended on your behalf. You can ask for Forbearance which means your lender can opt to waive some of your fees, or perhaps you can request for a reinstatement of your mortgage. A reinstatement allows you to submit your repayment in full at a pre-arranged date.
If you don’t speak in English, get your own translator. Don’t rely on the other party’s translator. Always insist to have your own personal translator when making deals.
Beware of providing your personal information over the phone or over the internet. They can steal these important details to commit fraud against you. Always remember that identity theft and fraud goes hand in hand.
Never sign any contract without consulting a lawyer. This is especially true if you plan to sell your property before the due of foreclosure. Some home owners are pressured to sell their property with only a short time left before foreclosure that they may sign an agreement right away. Be especially wary of contracts or documents with blank lines or spaces. For your own protection, having your lawyer personally check on the legality and accuracy on the terms stated in the contract is best. If you’re going to sell your home, the last thing you need is to get unfair terms on your property. You need all the financial help you can get to start over.
About the Author
George Bents is a loan consultant with NewHorizon Finance and has been providing consumers and business owners with home loans financing since 1989. For years she has helped people with home loan problems especially pertaining to home mortgage loans and bad credit home loans.
Copyright 2009
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