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Watch out for scams promising to stop home foreclosure

On Behalf of | Aug 9, 2018 | Firm News, Stop Home Foreclosure | 0 comments

Those facing foreclosure may feel desperate. So, when they are presented with a loan modification opportunity, it may seem like an offer that is too good to be true. However, sometimes these offers are actually scams that homeowners need to be aware of.

The Federal Trade Commission reports that these scam artists will examine published foreclosure notices, public files and information on the Internet to find people to prey upon. They may advertise that they can immediately stop home foreclosure, or they may guarantee that they can do so. They may have a website that appears to be associated with the government, making them seem like a legitimate business when they are not. These scam artists may also require people to pay hefty fees in exchange for saving their home, but the scam artists take the money with no intent of actually fulfilling this promise.

Scam artists may even promise to purchase a homeowner’s property and state that they will allow the homeowner to stay on the property as a renter with the opportunity to repurchase the property at a later date. However, these scam artists may never intend to sell the property back to the homeowner. They may even sell the home to someone else, or they may drain the equity in the property causing it to go into default. Finally, they may promise that they can quickly put an end to foreclosure. However, it takes time to work out a solution with a loan servicer.

In the end, it is important to be able to identify the difference between a legitimate mortgage servicer and a scam artist. There are many legal avenues for help if a person wants to stop home foreclosure. For example, filing for bankruptcy can halt foreclosure, at least for a period of time. However, that time may be just what is needed for a homeowner to catch up on their delinquencies or establish a payment plan that works for them and their lender.