Foreclosure Rescue scams: 4 common types

by patrol

Foreclosure Rescue scams sweep over the United States like anything. There are so many reports of Foreclosure scams that you do not know which agent or professional to trust and whom to not trust. Generally there are four common types of  foreclosure rescue scams and some of them are:

1. Phantom Help: The scammer contacts you and offers you “genuine” help. Promises are made to relieve you of stress and you are made to believe in every word of the scammer. The scammer assures you that your property will come from foreclosure and asks you to pay a small fee to start his process. You are billed heavily for paperwork and phone calls which you could have done yourself. Ultimately, your house comes to foreclosure and your scammer is nowhere to be found. Or, he cooks up some lie to  escape from the whole episode.

2. Bait and Switch:
The scammer baits you with a new loan. He tells you that he can offer you a “rescue” loan that can save you from debt. You sign the documents not knowing that the documents were actually meant to sign off your title/deed to the house to the scam artist. You are also not offered a rescue loan.

3. Rent-to-Buy or Bail out scheme: The scam artist assures you that you can sell your property to him and he will rent it out to you. You sell off, with the scammer assuring you to discuss with your lender. You are relieved thinking that your problem is over. NO. The scammer fixes your rent at high rate so much so that you are forcefully evicted out of the house for not paying rents properly. The scammer finds another buyer and you end up losing your house and money!

4. Bankruptcy scheme: The scammer collects fee from you and files a bankruptcy case in your name. You are made to believe that you have been re-financed a loan to settle all your financial issues. Only later, you come to realize that there has been a bankruptcy filed in your name and that is why the lender has not approached you for foreclosure. You feel the brunt of bankruptcy for long as you cannot be eligible for loans during the next 10 years on account of the bankruptcy case. Another variation is when, you fail to attend the meeting with your creditors and the judge dismisses your bankruptcy petition and asks the lender to proceed with the foreclosure.

In all these cases, the scam artist does not ask you to contact your lender at any costs. He says that his company will coordinate with your lender. You can find legitimate help for this in the Federal Trade Commission (FTC) or check the authenticity of the foreclosure rescue scam company in BBB.

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