Ways to avoid Foreclosure A Look at the Foreclosure Process Foreclosure Relief Options The HOPE for Homeowners Program How to Recognize Foreclosure Rescue Scams

Recognizing Foreclosure Rescue Scams

Homeowners facing foreclosure face a tremendous amount of stress and anxiety for the future. In the face of such difficult times, many homeowners seek assistance from debt counselors and agencies that promise homeowners relief from their debt. While there are many reputable credit counseling agencies out there, it is important to be aware of the scams unscrupulous agencies employ to prey on the fears of homeowners facing foreclosure.

Common scams to be aware of include the following:

Phantom-help scams occur when con artists offer to handle everything for a fee upfront. Con artists will usually try to dissuade debtors from talking to their lenders directly, promising to handle all communication for anxious homeowners. In these scams, con artists may also tell homeowners to make their mortgage payments directly to them and they will then pass the money on to your mortgage lender. This almost never happens and homeowners that are already in financial straits find themselves even deeper in the hole.

If you are not sure where to turn for help with your financial difficulties, it is a good idea to speak directly with your mortgage lender. Mortgage lenders are often willing to work with homeowners who have come on hard times, offering a number of options that can prevent foreclosure (see Avoiding Foreclosure). If you still need assistance with your debt contact your state’s attorney general’s office or the Better Business Bureau to find a legitimate debt management company.If you do decide to use a debt management company, do your homework and be cautious of any agency or consultant who:

It is often a good idea to utilize an attorney when you are facing home foreclosure. An attorney can help you understand what your rights and responsibilities are and help you develop a plan to save your home from foreclosure if that is possible. Additionally, an attorney can help you avoid losing your home to scam artists by providing you with the information you need to make wise choices during your financial difficulties.