Some people take unfair advantage of homeowners in default. These scammers will promise to help you but will only leave you in worse shape. According to HUD, the most common scams are equity skimming and phony counseling agencies.Equity skimming: you will be approached by someone who promises to pay off what you owe to the foreclosing lender if you hand over ownership of your property, usually through what’s called a Quit Claim Deed. Once you’re out of the house, the new owner rents it out for a few months and never pays off your mortgage, causing the lender to foreclose. You end up with a foreclosure on your credit history and with little or nothing to show for any equity you had built in the property.
Phony counseling agencies: phony counseling agencies contact homeowners in default and offer help for a fee. Once they have your money, they may not do anything for you. If they do help you, it will be by contacting your lender or suggesting that you sell your house — tasks you can do on your own.
On its website, HUD suggests the following precautions to avoid scams:
1. Don’t sign any papers you don’t fully understand.
2. Make sure you get all “promises” in writing.
3. Beware of any contract of sale or loan assumption where you are not formally released from liability for your mortgage debt.
4.Check with a lawyer or your mortgage company before entering into any deal involving your
home.
5.If you’re selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer by contacting the state’s Attorney General, State Real Estate Commission or the local District Attorney.
If you find yourself unable to make your monthly mortgage payments, the key is to take control of the situation by knowing all your options and acting decisively to stop the foreclosure. That will allow you to make the best out of a difficult situation
On its website, HUD suggests the following precautions to avoid scams:
1. Don’t sign any papers you don’t fully understand.
2. Make sure you get all “promises” in writing.
3. Beware of any contract of sale or loan assumption where you are not formally released from liability for your mortgage debt.
4.Check with a lawyer or your mortgage company before entering into any deal involving your
home.
5.If you’re selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer by contacting the state’s Attorney General, State Real Estate Commission or the local District Attorney.
If you find yourself unable to make your monthly mortgage payments, the key is to take control of the situation by knowing all your options and acting decisively to stop the foreclosure. That will allow you to make the best out of a difficult situation
