Almost everyone has experienced some financial troubles throughout their life. The key is not to surrender to the stress and dim perspectives this situation might bring but look out for a solution, sometimes even with the help of a professional. One of the most often misfortunes resulting from financial struggles is the possibility to lose your home. Usually, if you are more than 60 days late on your mortgage payment you will get a letter from your lender with a notification what will follow. Initially that will be warnings and suggestions how to renegotiate your mortgage but eventually things will go worse if you don’t take measures. Don’t worry – even if you are already served with a foreclosure, there is a way to work through this if you seek professional help. Consulting a foreclosure attorney on your home status is the best action to take. They will give you proper advice on what is the best road to take for your specific situation and will definitely help you avoid scams. Below you can find three main tips on how to recognize and avoid foreclosure scams.
Know the procedure
The first thing to do when faced with the possibility to lose your home due to foreclosure is to get to know the procedure. It will be useful even if you just browse the internet to get some basic knowledge of what you should expect. You can read about the different options – such as filing a Chapter 7 or Chapter 13 bankruptcy, you can find some stories of success that will encourage you, but most important of all – you will know more or less what lies ahead of you. There will be some legal terms that you will come across, so you can write them down and ask your counselor or attorney about them, as the next step is to seek professional advice.
Always consult a licensed professional
When you are faced with a foreclosure, don’t rely on occasional internet adds to direct you to the best company which can help you but seek professional advice. Even in the letters you receive from your bank about the late mortgage instalments you are advised to seek help and call the Department of Housing and Urban Development. It is good to find a reliable attorney who is specialized in this sphere and who will give you proper legal advice. There are many good professionals who even offer free consultations to start with. A good counsel is worth a lot and a professional in the field will give you the best advice for your personal situation – sometimes it might be to surrender the house, sometimes it will be how to keep fighting to keep it. It is all up to the specific case.
Recognize some of the most often schemes used
It is also important to learn about the most often scams that are used in your state or region. Here again the internet can come handy – search for the house related scams that were reported in the news and what were the schemes used. Your attorney can also give you some examples. Some of the most often scams are:
- A well-dressed gentleman or lady comes to you pretending to represent the foreclosure department of your mortgage company. They offer a special payment scheme to stop the procedure, whereas you either pay a big lump of money upfront or send monthly installments for a shorter period of time. At the end of the day your money never reach the company and the scammer runs away with them.
- You are contacted by a local agency who claims to be working in your interest but actually they prevent you from taking real action and buy your home at the auction organized by the bank
- You are approached by a stranger, who claims to be specialist in foreclosure and asks for your deed as a security for stopping the process or for arranging a better loan
The overall conclusion is – never trust strangers and never give them money or your property documentation. Always double check if they are really representing your bank, attorney or other authorized agency.