As soon as your mortgage company files a foreclosure, con-artists may ask you to sell them your home. These foreclosure “consultants” promise help to avoid a foreclosure, but by relying on their advice, you fail to go to an attorney that could stop or cure the foreclosure. Sometimes a bankruptcy can be filed to reverse these purchases.
Recognize Foreclosure Scams
These are just some of the local foreclosure scams we have seen in Louisville. Here is a timeline of the foreclosure process. Please beware of Rescue scams claiming to help you stop a Kentucky foreclosure.
- Predatory loans or up front fees for mortgages that are never granted to stop a foreclosure.
- Buying your home for less than what it is worth to stop the foreclosure.
- Claims to be the foreclosure department of your mortgage company, offering a payment plan to stop the foreclosure. Instead they simply take your payments and leave town.
- Giving a stranger your deed as security because he promises you a loan or to stop the foreclosure
- Claims to be a Kentucky agency that will defend you. Meanwhile, they buy your home at the auction while they convince you they are defending you.
- Requires up front fees or requires you to sign over the home to him before he has paid for it.
If you have had a lawsuit filed against you then seek help from an attorney immediately to answer the lawsuit or file a Chapter 13 bankruptcy to save your home. You only have 20 days to file an answer. You may also want to file a Chapter 7 bankruptcy to avoid an income tax problem or deficiency A Chapter 7 or Chapter 13 will also stop and delay the foreclosure for months if it is filed just before the sale even if you intend the home to eventually go back.