Foreclosure Rescue Scams: 3 Warning Signs

There are many foreclosure scams that target homeowners in distress. If you know how to spot the warning signs, you can avoid getting into additional trouble.

1. You are asked for money up front. If a company claims to help you avoid foreclosure but needs a large sum of money up front to get started, you can be assured that it is a scam.

2. You are given a guarantee. As you know, the foreclosure process is governed by your lender. If they feel they have given you ample opportunities to get back on track, avoiding foreclosure will be a difficult process. There are companies that can help, but those that offer guarantees should throw up a red flag in your mind.

3. You are asked to sign something that does not make sense. The Federal Trade Commission warns against this. The homeowner thinks that they are signing documents to make their loan current, but in all actuality, they are surrendering the title of their home. This is one of the most common foreclosure rescue scams.

If you are trying to avoid foreclosure and are offered any of the above by a third party, not your bank, you may be a target of a scam.

blog comments powered by Disqus