The likelihood of losing your home to foreclosure can be terrifying. The reality that con artists are preying on the weakness of desperate owners is about as frightening as sites like The Rich Janitor which are about as bad. Many so-called foreclosure rescue corporations or foreclosure help firms said they can help you save your house. Some are brazen enough to supply a money-back guarantee. Unfortunately, once most of these foreclosure scammers take your money in their money making scams, they leave you much the worse for wear.

Fraudulent foreclosure rescue executives use half truths and outright lies to sell services that promise relief and then fail to supply. Their goal is to make a fast profit through costs or home loan payments they collect from you, but do not pass on to the lender. Sometimes, they take ownership of your property by deceiving you, the home-owner. Then, when it’s too late to save your house, they take the property or siphon off the equity. You’ve lost your home to foreclosure despite your best intentions.

If you believe that you might be facing foreclosure, the FTC ( FTC ), the state’s shopper protection agency, would like for you to understand how to recognise a foreclosure rescue con. 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 save your house.
how the swindles Work

Foreclosure rescue firms use a variety of tactics to find homeowners in distress: Some comb through public foreclosure notices in papers and online or through public files at local government offices, and then send personalised letters to owners. Others take a wider approach through advertisements online, on TV, or in the paper, posters on telefone 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, such as:

Avoid Being Foreclosed Today!

We guarantee to prevent you getting foreclosed on.

Keep your house. We know your home is booked to be sold. We can do it!

We have special relationships inside many banks that can step up your case approval.

We can Save your home. Guaranteed. Free Consultation

We stop repos everyday . Our team of professionals can stop yours this week!

Once they have your attention, they use a range of tactics to get your money:
fake support or ghost Help

The scammer tells you that he will negotiate a contract with your bank to save your home if you pay a fee first. You could be told not to call your bank, lawyer, or credit advisor, and to let the scam artist handle all of the details. Once you pay the fee, the scam artist takes off with your cash.

Sometimes, the scam artist insists that you make all mortgage payments straight to him while he negotiates with the bank. In this example, the con artist may collect a few months of payments before disappearing.
Bait-and-Switch

You suspect you are signing documents for a new loan to make your present mortgage current. This is a trick : you’ve signed documents that surrender the title of your house to the con artist in return for a rescue loan.
Rent-to-Buy Scheme

You are told to surrender the title as a part of a deal that permits you to remain in your home as a renter, and to buy it back during the following couple of years. You may be told that surrendering the title will permit a borrower with a better credit rating to secure new financing and stop the loss of the home. But the terms of these deals usually are so burdensome that repurchasing your home becomes very unlikely. You lose the home, and the con artist walks off with all of your home’s equity. Worse yet, when the new debtor defaults on the loan, you’re evicted.

In a difference, the con artist raises the rent over time to the point that the previous home-owner can’t justify the price. After missing a few rent payments, the renter the previous homeowner is evicted, leaving the rescuer free to sell the house.

In an analogous equity-skimming situation, the con artist offers to discover a buyer for your house, but only if you sign over the deed and move out. The trick artist promises to pay you a portion of the profit when the home sells. Once you transfer the deed, the sting artist simply hires out the home and pockets the proceeds while your lender proceeds with the foreclosure. In the final analysis, you lose your home and you’re still answerable for the unpaid mortgage. That is because transferring the deed does nothing to transfer your mortgage obligation.

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This entry was posted on Saturday, August 28th, 2010 at 1:23 pm and is filed under Real Estate Investments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.