Friday, January 16, 2009

Foreclosure Scams on the Rise

Foreclosure rescue companies may promise to save your home, but only empty your wallet.

Homeowners report, according to the Council of Better Business Bureaus, that they were either contacted directly by a mortgage foreclosure rescue company or came across a Web site while searching for help to stop foreclosure on their home.

The companies claimed they would renegotiate the terms of their mortgages and stop foreclosure actions, or the homeowners would get their money back.

Victims, who were desperate to keep their homes, paid as much as $1,300.

In the end, the companies did very little work or often nothing at all. Most victims, not only lost their homes, but they also have not been able to get promised refunds, either.

If any business or individual offers to help you stop foreclosure immediately by signing a document authorizing them to act on your behalf or to set up financing for you, do not sign without consulting a professional (an attorney or HUD-approved counselor).
 
This may be a trick to get you to sign over title to your home. You are then vulnerable to losing your home and all of your equity in your home to the so called "rescuer."