When you are in foreclosure, there are plenty of people who want to take advantage of you.
Here are some of the scams that are used on people in foreclosure:
SCAM 1: Anyone who doesn't approve of what we do for people.
SCAM 2: "Bankruptcy stops your foreclosure."
SCAM 3: "We don't want your home."
SCAM 4: "I want to buy your home."
SCAM 5: "I can keep you in your home for three years without you paying anything."
SCAM 6: "I will sue the bank for you."
SCAM 7: "Your home is about to be sold at Sheriff's sale."
SCAM 8: "I can help you modify your mortgage and avoid foreclosure."
SCAM 9: "I can help you sell your home to avoid foreclosure."
Anyone who doesn't approve of what we do for people.
These people want to make money off of you, and won't be able to do so if you are working with us. We keep your money where it belongs - in your pocket. We keep you where you belong - in your home, or wherever you want to be.
"Bankruptcy can stop your foreclosure."
For most people, there are ways to get out of your debt without filing bankruptcy. For the few people who actually need to file bankruptcy, we can handle it for you economically. We are experts at using bankruptcy to help you with your foreclosure case. People outside of our organization usually mistakenly tell you to file your bankruptcy just before the sheriff's sale of your home. There is a much better strategy available, and which our clients can take advantage of.
"We don't want your home."
Mortgage banks like to tell you that they don't want your home, that they instead want to help you to work things out. What the banks don't tell you is that the decision is usually not even made by the bank. The decision is usually made instead by the "investor" for your mortgage, whose identity they don't want you to know. Try calling your mortgage bank and asking who your investor is. Some banks won't even tell you, or will make it difficult for you to get the information. If your investor is Freddie Mac, then bad for you, because it seems that Freddie Mac wants your home. Freddie Mac is involved in a large percentage of cases where a bank says no to a short sale proposal, then forecloses and sells the home for a much lower price than what was offered in the short sale. If your investor is Fannie Mae, or if you have an FHA loan, then good for you, because you will have a much better chance of getting out of your mortgage debt. Fannie Mae and FHA are community friendly. Bad for you again if you have a Chase mortgage, because a Chase representative announced at a 2011 meeting in Illinois that Chase will not release people from their deficiencies if they do a short sale. These are the kinds of issues and problems that we deal with when we work with people who are having trouble making their mortgage payments.
"I want to buy your home."
This is what the home-flippers advertise. Their typical plan is to offer you a small percentage of your homes value, so that you are selling it to them in a short-sale.
Your "buyer" is actually an investor looking to cash in on a quick re-sale of your home.
You sign the contract, provide all of your financial documents which get forwarded to your lender, and you wait to see if your lender will approve the short sale.
Then, while you are waiting for the approval of your short sale, the investor puts your home on the market, and tries to sell it to someone else for a higher price than you are selling it for.
The plan is to close the short-sale of your home to the investor while the investor sells it to someone else at the same time, and makes tens of thousands of dollars.
The way you get scammed is that your lender sends out one or more appraisers to check the value of your home, before your lender will approve the sale.
If your home is worth more than what the investor is paying, then your lender does not approve your short sale.
You CAN NOT sell your home, because the investor got you to sign papers which tie up your home, preventing you from selling it to anyone but the investor.
The investor usually keeps trying to modify the buying and re-selling price right up until the time your home goes to sheriff sale.
You get essentially no private time in your home, since the investor is always looking for a better person to re-sell to, right from the start.
You lose a lot of free and private time in your home, any you get a foreclosure judgment against you.
"I can keep you in your home for three years without you paying anything."
If someone tells you this, ask them to put it in writing. Then listen for the fast talk. Make sure to ask them how they get paid, and what documents you will be asked to sign. Have your checkbook ready.
"I will sue the bank for you."
If someone tells you this, ask them to give you the case cite for at least one foreclosure case that they have won. Then listen for the fast talk.
"Your home is about to be sold at Sheriff's sale."
You get a letter in the mail saying that your home will be sold at sheriff's sale in a few days, or a couple of weeks. When you call the number on the letter to get information, you get an answering service which "takes your information." Later, you get marketing calls from people who don't know anything about the supposed sheriff's sale, but who have services to sell you. Instead, contact us with your case number and complete address, and we can get you the truth about your foreclosure case.
"I can help you modify your mortgage and avoid foreclosure."
Don't pay. Especially to out-of-state organizations who make verbal promises, and who want you to pay up front. Government approved agencies can help you for free with your mortgage modification, and their quality is very good. If you failed to get a modification using the free agencies, then contact us with your information, to see what we can do for you.
"I can help you sell your home to avoid foreclosure."
Realtors usually make their money when your sale closes.
Most realtors want to sell your home right away, and get you out on the street as soon as possible.
A typical realtor gets no benefit from letting you stay in your home for a long time before selling it, and so will not help you to stay in your home.
But we live by one fundamental rule of real estate - "Don't be greedy."
If you are trusting us, and using us to help with your foreclosure situation, then we pay you back by helping you to stay in your home for as long as possible, without paying taxes, and without making mortgage payments. You should only leave right away if that is what you want to do.
For a free agency, try MAKINGHOMEAFFORDABLE.gov, or call 888-995-HOPE.