Mortgage Scammers on People in Foreclosure, Promising to Save Your Home

The experience of foreclosure is bad enough without mortgage fraudsters preying on you.

When the foreclosure process starts, it's a matter of official record and enough info is revealed for the fraudsters to find you and guarantee to save your home with their unique, creative financing program. One famous kind of trick is the rescue, also known as equity stripping. An individual or company makes a plea to be able to help keep your home. They know you are in foreclosure and public records have given them enough info so they know you have some equity in your home. They talk you into selling your home terribly cheap ; the sale is to be non permanent, just whilst you get your financial affairs back in order. The company pays the mortgage payments and you pay them lease to remain in your home and you've got the option to buy back the home in the future. This should be a good situation if your finance situation is corrected quickly and the company is credible.

You keep your home and the company makes a profit for their services. Naturally, the above scenario is one employed by a lot of conmen who have no target of selling your home back to you. They are getting a mortgage, pay off all of the underlying debt on your home and you sign a 1 or 2 year lease with option to get at the end of the lease period. The lease they have you sign is really confusing ; this is one method used when conning the already troubled and overwhelmed homeowner.

The lease is written so you won't be ready to meet all of the terms ; for instance, the payment ends up being higher than predicted and default is unavoidable. You miss payments, the company evicts you and they sell your home for closer to market valuation and a big profit. If your home does not have much equity, the company simply tells you they have taken over your payments, when all they are actually doing is taking the rent money as pure profit and permitting the foreclosure to cancelled. If you are in foreclosure, there are credible corporations who can be of help ; just use caution as to the way the business is conducted. Don't believe guarantees or guarantees like "I will save your home" or "I will get your mortgage payments cut in half." Never sign the title over to someone else or company.

Don't sell your home without being released of your mortgage duty. Be certain you understand all of the documents you do sign and be conscious of what your rights are.