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A foreclosure "rescue" scam could cost you your home. While not allcompanies that approach you to help you save your home are "scam artists",you need to be very cautious if someone does offer help that sounds too goodto be true. Don’t sign anything until you have done your homework first. Call ahousing counselor or your lender and ask them about the deal before making acommitment.Just remember, if something sounds too good to be true, it probably is!
Scenarios to watch out for
Unethical consulting services
- Some foreclosure rescuers try to pass themselves off aslegitimate foreclosure counselors.They may charge you for services you can easily do foryourself, or take steps that actually hurt you. As a result, you receive little or no help in stoppingthe foreclosure from taking place. Remember, you can talk to a housing counselor for free, whocan advise you on the best steps to take when trying to save your home from foreclosure.
Deals that let you stay in your home
- Some foreclosure rescuers will offer to bring yourmortgage up to date and let you stay in your home until you can pay them back. The scammer"bails you out" by helping get rid of your house. The way the scammers get rid of your housevaries, but each method ends with you surrendering the title to the house on the promise that youcan stay on as a renter and buy the house back once things have been "fixed." The scammerusually sets the rental price at a level that you cannot afford, and then they evict you for failure topay the rent. In the end, of course, you can't buy the house back and the scammers get most, if not all, of your equity.
Bait and switch/fraud
- Some foreclosure rescuers will simply lie about what they will do foryou. The scammers will tell you that you are signing documents for a new loan that will solveyour problems. In reality, you are signing forged documents that will give the scammersownership of your home. To make matters worse, you will still owe for the mortgage but will nolonger have the home.
How do the scammers find you?
A scammer finds homeowners in need of "help" through localpublic-foreclosure notices.They advertise their service by dropping a card or flier on yourdoorstep or calling you. They also post ads in public places. Youshould ignore posters, fliers and especially handwritten notesoffering help for your foreclosure.
How do the scammers hook you?
At the first meeting, the scammer builds up your hopes andpromises a fresh start. There are also empty promises made such asthat they will sell the house back to you at some point.
ortgage Rescue Scamshttp://homehelpnh.org/scams.htm1 of 26/7/2011 6:20 PM