What are foreclosure scams?

When a Colorado resident is facing the potential loss of their family’s home, they may become desperate to save it from foreclosure. While some organizations and entities work for the good of consumers to keep them in their residences, opportunistic individuals and businesses sometimes seek to prey on those who are facing significant financial perils. These types of entities are responsible for subjecting home owners to foreclosure scams.

Foreclosure scams can take on many different forms. For example, an opportunistic lender may offer a person a different lending package in exchange for the person signing the deed to their home over to the new lender. That lender may then treat the home as their own property and the person may find themselves evicted from the property.

Additionally, home owners may be tricked into balloon payment financing. They may secure a new loan on their home through a predatory lender that only requires them to make payments on their home’s interest. However, when the loan eventually becomes due, that home owner may have to pay off the full principal of their property in one balloon payment. Few individuals can come up with the thousands of dollars necessary to make good on such a deal.

These are only a few of the types of scams that innocent Colorado residents may fall victim to when they are facing the loss of their homes due to foreclosure. To get the best possible advice on how to protect one’s home from foreclosure, readers are encouraged to speak with their trusted attorneys about their rights and options for keeping their residences.