As with many aspects in life, the real estate market has its share of scams. There are many ways to be scammed in regards to real estate with the top of the list being ‘foreclosure rescue’ scams. With the weak economy and so many people losing their jobs and losing their homes, this type of scam comes in all directions.
For those that lost their jobs the past few years and have not been able to secure another, many have gone through their savings keeping their bills and mortgage paid up. Unfortunately, savings account empty out leaving many people desperate and looking for help to hang on to their homes. These are the people that criminals seek out. They approach the desperate homeowner with offers to re-negotiate with their lender on their behalf.
While there are legitimate companies that do this, there are those companies that are out for a fast buck. The first hint that should make a homeowner leery would be the company asking for a ‘small fee’ to be paid up front. That fee can be from $1000 and up and the homeowner is told that this process will take 45-90 days to be resolved. They are instructed to ‘ignore’ any foreclosure notes they may receive as this process gets worked out.
What happens next is frustrating and sad. That company that took their hard earned, scrapped up, maybe even borrowed money and they disappeared. There was never any contract made by them to the lender on their behalf. By then, they find themselves even closer to foreclosure with even less money than before.
If you are finding yourself in the position of trying to save your home from foreclosure, there are legitimate companies out there to help you. Do your homework before signing any documents. You are trying to save the largest investment of your life, take the time to check a company out with the local BBB offices. If they require a fee upfront and it seems too good to be true, it most likely is too good to be true.