Beware of Foreclosure
Fraud When Trying To Stop Foreclosure
Foreclosure fraud is unfortunately something that happens on an almost
daily basis and many people end up in even dire straits than before
despite their efforts to stop foreclosure proceedings.
www.SaveMeFromForeclosure.com can provide you with the information you
need to be aware of the types of foreclosure fraud that are out there and how to
avoid becoming a victim of foreclosure fraud. There are a number of different types of foreclosure fraud. All of them can leave you facing the same situation or an even worse situation when facing a foreclosure. It is a good idea to avoid the following situations - and if you must take action using one of these methods you take the time to thoroughly research the company or person offering to help you. Some common foreclosure fraud situations include what can be called the “Phantom Helper,” the “Bait and switch,” and the “Lease Buy Back.”
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The Phantom helper foreclosure fraud involves an individual or company, who offers to handle negotiations for you with your lender for a small upfront fee. This fee is usually required to be paid in advance before any prequalifications have been done. However, often times the fee is taken, pocketed and no negotiations happen. Leaving you short the fee and short a resolution from your lender. The company you work with should do a thorough analysis of your situation and provide you with a prequalification to see if you qualify for a negotiation. Most reputable companies will not even take on your case without a prequalification to see if you would likely qualify for a loan modification and many offer a full or partial refund of your fee if they do not in fact provide you with a completed modification.
The “Bait and Switch” foreclosure fraud situation is where the homeowner signs over the home to someone who says they can purchase the home back at a later date. This type of foreclosure fraud does stop foreclosure proceedings however; the home is usually sold by the time the original homeowner is able to purchase the home back. The final type of foreclosure fraud that is commonly found is called the lease buy back.
The lease buy back is one of the worse types of foreclosure fraud you can find. This foreclosure fraud involves an individual or company posing as an investor who offers to purchase the home, allowing the original owner to live in it, pay rent and in doing so fix part of their credit. They will be allowed to purchase the home back after getting financially stable. However, the new home owner takes out an even larger loan on the home leaving the original owners unable to qualify. Usually, the homeowner cannot qualify for a new mortgage and they are left with eviction. In this foreclosure fraud scenario, the investor walks away with the pocketed money and the homeowner is left homeless.
Foreclosure fraud happens more often than one might think. More information on how you can stop foreclosure and foreclosure fraud can be found here at www.SaveMeFromForeclosure.com.