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What is a Foreclosure “Rescue” Scam?

With foreclosure numbers still high, the housing environment is susceptible to various scams and dishonest companies trying to do further damage an already shaky industry. Many homeowners are falling victim to foreclosure “rescue” scams, which cannot only give homeowners a false sense of security but also rob them of their property and equity. A foreclosure rescue scam involves a company promising a homeowner in distress that they can save their home from foreclosure. Usually, this promise is false and the home cannot be saved. The scam artists will take your money and property, and leave you without your home. Here are the worst foreclosure rescue scams to avoid: • Foreclosure specialists. These “experts” promise they can save your home or modify your mortgage, and will collect money from you up front. • Phantom help. A company will charge you for things you can do on your own, such as negotiating with your lender. • Bait and switch. A company will convince a homeowner to sign over the deed to his or her house, under the guise that new mortgage documents are being signed. • False bailout. A homeowner will think he or she can rent their home from a new owner with the intention of buying it back. This usually works with a scam where homeowners agree to sign over the deed to their homes. If you have additional questions about Forclosure “Rescue” Scams or believe you’ve been the victim of one, Stephen K. Hachey, a Florida real estate attorney, can help. Contact our offices at 866-200-4646. This article is for general informational purposes only and does not establish an attorney-client relationship. Please contact a licensed attorney in your state of residence. For more information on our services, please visit our website at floridarealestatelawyer.org.

This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.