Avoid Scams

With all the discussion of foreclosures these days, there are more and more people aware of the numbers of homeowners in foreclosure and more people everyday viewing you as an easy target to make a profit from.

Please educate yourself and avoid being a victim of a scam, fraud or deceit. If you don't, it could cost you your hard-earned money and possibly your home.

PREDATORY SOLICITORS

These companies send you letters in the mail claiming to be involved in your mortgage or foreclosure and insist that your only option to avoid the sale of your home is to call them immediately to make a payment in part or in full for the total amount due or pay their fees to represent you to your lender.

Beware. These letters look very official and will often tell you that you have a sale date to scare you into calling them immediately. They often go by titles such as mortgage or foreclosure assistance or solutions. Don't fall for this one. They obtained your information from the public record on your mortgage and sent you letters to scare you into sending them money in hopes of stopping your foreclosure. You will lose any money you send them.

Special Note: If you receive a letter from your lender or a trustee attorney representing your lender, you should take it seriously.

Research any company with the Better Business Bureau before sending money to them.

IMMITATORS

In 2002, there were less than a dozen companies offering foreclosure solution services on the internet. Today there are more than 50. They all claim to be long-time experts in foreclosure solutions although they've only just recently created their businesses and registered their websites.

It's easy for a company or individual to post a website and make claims that sound like the answer to your prayers. Unfortunately many cannot perform the necessary work and deliver the solutions required to save your home. They charge you the same fees or more and make the same or better promises as legitimate experienced companies and they do nothing for you. They cost you valuable time and money at a time when both are essential to the success of your situation.

Don't hire any company or any person unless they are good standing members of the Better Business Bureau and have a history you know you can trust.

LEASE-BACK OPTION

In a lease-back option, you are essentially signing your home over to a third party lender and then leasing it from them for 2-3 years (typically). You are enticed by the promise of a lower payment, but the interest they charge you is generally extremely high (as much as 20%) and the balloon payment you have to pay at the end of the agreement to get your house back is huge and almost impossible for most homeowners to save. Most homeowners do not realize they are paying thousands of dollars more for the interest on the lease-back option and risking losing their home if they fail to make the payments or the balloon according to the terms of the contract.

Lease-back options are unnecessary if you can afford your mortgage payment and just need to catch up the arrears. Seek a professional who can assist you in negotiating a plan to bring your existing loan current.

PRIVATE INVESTORS

See above. Same as predatory lenders and lease-back options. If they approach you, they are looking to profit from your situation. Most private investors will offer to buy your home for the cost of the loan and give you a few thousand dollars to use for moving costs. You lose your equity and have to move. Some investors may offer you a lease-back option. If you do a lease-back option and you miss a payment, you are out of your home. They own it. Either way, they make a huge profit from your misfortune.

A FINAL WORD ON SCAMS

Don't do business with anyone who is not a member of the Better Business Bureau. It's your job to do your homework and protect yourself and your family from fraud. If you do business with people on blind faith, you are making yourself very vulnerable and risking your finances and your home.

IF YOU HAVE BEEN A VICTIM OF FRAUD

If you feel you have been a victim of fraud, contact us and we'll tell you what to do to try to recuperate your losses and how to report the incident so the fraudulent company can be stopped.

If you believe you have been approached by a fraudulent company, call us and report it so we can assist you.

IF YOU CAN AFFORD YOUR MORTGAGE

If you can afford your mortgage payment, a hardship solution is your best and first course of action. Click here for a free consultation and begin working with professionals who can help you.

IF YOU CAN'T AFFORD YOUR MORTGAGE

If you can't afford your mortgage payment and want to find out what other options you have, call us now at 1-800-476-7221. We can put you in contact with companies and individuals that offer solutions to foreclosures that are safe for the homeowner. Our network of contacts offer alternatives that operate with integrity and service.