Are you a homeowner facing foreclosure? If so you need to watch out for companies that are calling and writing you claiming that they can help you beat foreclosure. Unfortunately most of them are scams and they are looking for ways to try and make you part with what may be left of your savings or even worse the title to your home.
With foreclosure still rising in our area the scammers are working over time. How do they find out about the potential foreclosures? The easiest way is to read the Friday paper which lists pending trustee sales and courthouse auction notices. They also can subscribe to a number of on-line sources which post pre-foreclosure information provided by mortgage companies.
So what do you look out for?
Anyone who asks for an upfront fee
Contacts you only after your home is listed for foreclosure
Tells you to make your mortgage payments to them instead of your current lender
Asks you to transfer the title to your property to another name.
Offers to "buy" your equity and let you rent back your property
If you are facing the possibility of foreclosure the most important thing you need to do is contact your current mortgage company right away. They stand to lose money if they go through the foreclosure process. As tough as it may be it is better to talk to your lender directly than wait for the sheriff to show up at your door with an eviction notice. Some lenders are working with homeowners in difficult situations look for alternatives to the foreclosure process.
Depending on your circumstances you may be eligible to sell your home as a "short sale" and though you will not receive any money when you sell your home you may also be able to avoid the foreclosure process and ruining your credit. Call your lender and talk to the loss mitigation department. They can provide you with a package which will tell you the information you will need to provide which includes pay stubs, tax returns, checking account balances and credit card statements. Though it may seem overwhelming at first it is better than losing everything you own to a stranger who calls you on the phone.
So be careful about what information you provide to a third party who is not your current mortgage holder or your real estate agent. You may lose more than you ever imagined possible to a foreclosure scam artist.
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As an Associate Broker with RE/MAX Allegiance in Northern Virginia and native of the area I can assist you whether you are buying, selling or renting a home anywhere in Northern Virginia. For more information about the area or my services you can check VaRealEstateTalk or my Northern Virginia website.
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Request $2,000 non-refundable option money. This usually makes them go away.
Geez. They and the Short Sale processors telephone calls I get are driving me nuts.
This is just another crop of scammers trying to get their hands in our pockets. They used to sell web pages. Then they started selling SEO. Then they started selling auctions. Then they started selling Virtual Assistant Services. Then they started selling what ever.
The Foreclosure and Short Sale experts or processors are just the scam flavor of the day.
Great blog! You're really providing a community service and consumer alert with this information to help those most likely to suffer from scammers.
Cindy, does this mean we shouldn't call those signs I see on every street corner that say "Stop Foreclosure. We buy houses!"?
Excellent post Cindy. I'm not sure if any short sale could ever result in a non-negative on a credit report though, but at least it would be a sale in lieu of foreclosure.
The other Related Scam to this foreclosure hype is the Hype Artists telling you how to BUY FORECLOSURES for "Pennies on the dollars". Whew...why don't these people get real jobs?
David-nice idea! Unfortunately most of the folks they are going after have no idea what they are signing away.
Lenn-yes they are. When they get tired of this game they will find a new way to go after what is left of our sanity!
Vickie-I was hoping that someone would read this and not invite one of these folks into their home!
Brian-aren't those nice "handwritten" signs? It is sad to think how many people everyday pick up the phone and call one of those numbers only to find themselves in even more trouble than before.
David-there is no doubt that a short sale does lower your credit score but according to the lenders I work with it doesn't hurt nearly as much as a foreclosure will.
Great post Cindy, if something sounds to good to be true it generally is.
Cindy, I often wonder what the scammers might accomplish if they put all that creativity and talent toward earning an honest living!
There are honest people able to help with short-sales. Unfortunately, there are many more in for the quick buck.
Right on, Cindy! And don't forget to mention those folks who say, "Behind on your mortgage? Pay us $995 and we'll drag out the foreclosure process for so long that you'll live rent free for a year! And don't worry, you'll be able to buy a house again in no time." There's all kinds of vultures out there.
Best regards,