Homeowners who struggle to pay their mortgage and fear facing foreclosure are extremely vulnerable to foreclosure scams. For example, let’s say you are struggling financially and someone who refers to themself as a “mortgage consultant” comes in with a fantastic solution to save you from losing your home. If this happens, you can likely assume you are the target of a scam. Fortunately, it’s not too difficult to spot a scammer, and you can easily protect yourself from these three foreclosure scams.
What Is A Foreclosure Scam?
Just as we previously mentioned, a foreclosure scam typically comes in the form of a person offering himself or herself up as a “foreclosure consultant” or “mortgage consultant.” These people claim they can assist homeowners who need foreclosure help by offering options to either keep their property, buy them more time, or modify their existing mortgage. Instead, they do none of the above and take the homeowner’s money and run.
Foreclosure Scam Warning Signs
There are quite a few different foreclosure help scams to be aware of. However, they all have the same goal – to take your money and/or the deed to your home and leave you stranded. Here are just three of the most common scams homeowners see:
Lease-Back or Repurchase
Homeowners who are extremely late on their mortgage payments and continue to pile up debt may be easily enticed to hand over their deed to a “third party investor” to deal with it. In the lease-back and repurchase scam scenario, a “third party investor” will claim they can help you get back on your feet by staying in your home as a renter with the option to repurchase your home once your financial situation is more stable. However, this is not the case. Once the investor has your deed, they are not obligated to sell your house back to you, and they can easily evict you if you miss a payment.
You will know you are subject to the phantom help scam when someone who claims they can counsel you out of foreclosure contacts you. The catch is, in order to receive their “services,” you must drop thousands of dollars for “processing and administrative fees.” Once they have your money, they will have you fill out some light paperwork and either tell you to stop making mortgage payments, directly send your payments to them or tell you not to contact your lender or lawyer. Then, just like a phantom, he or she will completely disappear, taking your money and leaving you in an even stickier situation.
Bait and Switch
The bait and switch scam is very easy and effective for scammers. What happens is the scammer poses as a mortgage broker and offers you a new loan at a desirable rate. When you accept, they will send a stack of foreclosure help papers to sign immediately. Instead, by signing those papers, you actually surrender ownership of your home. Once the deed goes through, you have a few months before you receive an eviction notice and realize you were never saved from foreclosure in the first place.
Foreclosure Help In Johnson County KS
Moral of the story, if it seems too good to be true, it likely is – especially when it comes to assistance on preventing foreclosure sale. Fortunately, despite the many scammers out there, there are legitimate companies available to help you face foreclosure on your home. At Cherry Park Properties, we have helped thousands of homeowners avoid a foreclosure sale in Johnson County KS. Our goal is to provide a hassle-free experience to every client, no matter what service we are providing. Contact us at 913-839-2345 to see how we can get you on the road to recovery.