Many people are facing losing their homes. Be careful of individual or companies who offer to “assist” you with this financial situation. Consumer advocates have seen an increase in this activity with scammers.
You may see the advertisements on the internet, local newspapers, posters, flyers, on doors or by phone call.
They may offer to buy your home by paying the overdue amount on the loan. They ask you to move out and deed the property to third party. The homeowner is given choice to rent the property with option to buy it back later. Usually the rent ends up higher than homeowner can afford. They may choose to buy it back at a later time and the price is higher than you can afford. In many cases they never actually change the deed and the homeowner is still actually responsible and doesn’t realize it.
The Better Business Bureau gives the advice that you are at risk to lose money, equity, the house or all three.
If you are in arrears and are facing foreclosure here are some tips.
- Call your lender ask if you can restructure loan payment or refinance. If you hire someone to do this it can cost a lot of money. .
- Sell the house yourself and pay lender.
- Be careful what you sign when hiring a company to assist they will bring many papers and one may be a quit-claim deed that you may not be aware you’re signing away your home.
- Beware of a handwritten note in the door that you may think a neighbor has put there suggesting a company to go with and it actually is a scam company.
- If a company that you hire to assist tells you not to contact lender or lawyer this should throw up a red flag. The person you should contact is your lender at first sign of trouble to see what they can do to assist you. Hiring an attorney is an expected thing to do with a complicated financial situation like foreclosure.
- You should never sign anything under pressure giving away ownership of property. You should have an attorney, financial expert or family member look at anything that is to be signed.
- Always check these companies out that offer to assist with the Better Business Bureau, State Attorney General Office and the Real Estate Commission.