Foreclosure Rescue Scams
Here’s the situation: your home goes into foreclosure and suddenly it’s as if you’re on every mailing list in town. Everyone is offering something to you, some way to get out of foreclosure.
What’s real and what’s not?
Welcome to the world of the foreclosure rescue scam, where someone waltzes into your life and promises to make it all go away. But remember - if something sounds too good to be true, it usually is.
The most common form of foreclosure rescue scam occurs when someone takes an up-front fee, usually $1,000 or more, to solve the your foreclosure problems, and then does little or nothing, pocketing the money.
Other versions of the scam involve something called “equity stripping,” when the scammer convinces you to sign over the title to your home with the promise that you will rent for a year or two and then take the title back. Frequently the “rescuer” will re-sell the house and run off with your money - and the profits from the sale.
Sometimes the home owner knows legal ownership is changing hands, counting on the promise to be able to redeem it later. But other times the con artist tricks the owner by burying the title in a mountain of official-looking paperwork to close the deal.
How do you tell the difference between a con artist and a reputable professional? Do your homework - and don’t assume that a slick website means that the company is legitimate. Call the Better Business Bureau, the state attorney general, the Federal Trade Commission and, if the professional is a lawyer, the state bar.
Above all, remember that the best thing you can do when it comes to foreclosure is seek competent legal advice from a local lawyer who has experience in handling foreclosure problems. Whatever the solution proposed, be prepared to take an active role in working through the situation until the end - if you just sit back and do nothing, you’re probably not going to end up happy about the result.