When you face foreclosure on your home, it’s heart-breaking! That’s when foreclosure scams try to take advantage of your situation and your emotions. As soon as your mortgage company files a foreclosure, con-artists move in to ask you to sell your home to them. However, you must remember that you only have 20 days to file an answer. This makes it even more important to recognize scams and report them to the Federal Trade Commission (FTC).
Learning to Recognize Foreclosure Rescue Scams
These foreclosure “consultants” promise to help you stop foreclosure. But, by relying on their advice, you fail to go to an attorney that really can stop or cure the foreclosure. In this article are just some of the foreclosure scams we have seen in Louisville.
There are many ways that these scam artists operate so continue to do your research and educate yourself. This is so important because when you’re facing a foreclosure on your home, it’s stressful. Moreover, it’s downright frightening for many people. If this is something that you need to know, please continue reading to learn more.
⎆ Be aware of these warning signs and actions.
The following are actions to be aware of and take steps to prevent. These are some of the scams in which these predators will attempt to convince you to take the entirely wrong actions for your situation. Below, I’ve listed some of the actions that should alert you that something is not right with the person or company who claims to be helping you.
- Offers you a “guarantee” that he will stop the foreclosure regardless of your circumstance.
- Offers you predatory loans or demands upfront fees to stop your foreclosure.
- Buys 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 take your money and leave town without making the payments to your mortgage company.
- Requests that you give him your deed as security because he promises 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 you erroneously believe they are defending you.
- Requires upfront fees or requires you to sign over the home to him before he has paid for it.
- Tells you there’s no need to contact your attorney, lender, or a housing counselor.
- Is only able to receive payments via cashier’s check or wire transfer.
- Requires you to make payments directly to him instead of your lender.
- Pressures you to sign documents without giving you time to read through them.
⎆ Be aware of how the foreclosure scams find you.
Here is a list of ways rescue scammers try to find you. Knowing this is an important step in protecting yourself from these scams. But, please know that a new scam is born every minute, so continue to be diligent in making yourself aware. Of course, the best way to avoid scams is to call an experienced attorney instead of opting for something that might seem “easier” or “quicker”. Remember, people who scam others are experts at recognizing the fears in you and then, plays on them immediately.
- You might hear advertisements on TV or Radio.
- A common practice is to spread flyers on car windows, phone posts, community bulletin boards, etc.
- They look in publications and online for homes in foreclosure and then contact you.
- They might even prey on specific religious or ethnic groups and play and then pretend to be sympathetic.
Remember, they will always make promises to stop the foreclosure and save your home. But, you can recognize the scam when they expect you to pay an up front fee that you should never, ever pay. Instead, call an attorney with experience right away.
⎆ Take the necessary steps to protect yourself from rescue scams.
If someone is filing a lawsuit against you, seek help from an attorney to answer the lawsuit. You may be able to file Chapter 13 to save your home but you only have 20 days to file an answer. So, never delay calling and thereby leave yourself wide open to unpleasant results.
Whenever someone files a foreclosure against your home, you must seek help from an attorney immediately to answer the lawsuit or file a Chapter 13 bankruptcy to save your home. Again, remember that 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. 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.
Continue to do your own research and call an attorney right away to prevent these scammers from coming into your already upset life.
Where to Report Foreclosure Scams
Federal Trade Commission (FTC) for foreclosure scams.
Trustee Regions and Offices for foreclosure scams that involve bankruptcy
If you’re facing foreclosure and want to save your home then, seek an attorney immediately and avoid the scams. Contact my office right away to start the conversation. Nick C. Thompson, Attorney: 502-625-0905