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.

Follow Us