Unfortunately there are people in the world who will take advantage of people in crisis. When you are about to lose your home because you can no longer make the monthly payments, you are desperate for help and there are scammers desperate to help you.
When facing foreclosure it is essential that you be on the lookout for scams. This is where an attorney can be extremely helpful. A mortgage attorney knows the ins and outs of the system and can guide you in the process of obtaining assistance.
Beware of any type of solution that sounds too simple or too good to be true. These solutions usually are exactly that, too good to be true. Do not let anyone rush you through the process and be especially alert to these following things:
- Equity skimming: This is a scam in which a buyer offers to get you out of financial trouble by promising to either pay off your mortgage or by giving you a sum of money once the property is sold. Often they suggest you move out quickly and deed the property to them.
- Phony counseling agencies: Some groups will call themselves counseling agencies and approach you offering to perform particular services for a fee. Many of these services are things you can do yourself for free such as negotiate a new payment plan with your lender.
You can always call HUD if you are in doubt about an agency. Always do this before you sign anything.