Losing a home to foreclosure can be devastating and it can be hard to keep a cool head. If you don’t, you’ll be more vulnerable to scam artists.
Some current foreclosure scams include:
-a lease back or promise that you can repurchase your home in the future, if you sell it to the scam artist now
refinance fraud where the homeowner believes he is refinancing but he’s actually signing the property over to a con artist
filing bankruptcy multiple times to get a temporary stay to delay foreclosure; these ultimately result in the homeowner having damaged credit and still losing his home
These scams were announced last week by the Office of the Comptroller of the Currency.
If someone approaches you be wary. He or she may have simply found your name or property on a list of foreclosed properties issued by your lender. When seeking help, you should initiate contact. Ask for references, check credentials and with the Better Business Bureau. If you feel you’re going to have trouble making mortgage payments contact your lender, who will likely prefer working out a plan with you rather than foreclosing.
If you feel you may have been the victim of a predatory lender, contact an attorney.
For more foreclosure advice, search for foreclosure on ThinkGlink.com. We have articles describing your choices depending on where in the foreclosure process you are.
May 19, 2008