Beware of Foreclosure Scams – Charlotte North Carolina

In these tough economic times, many homeowners are facing possible foreclosure. Consequently, foreclosure rescue scams that target families who have fallen behind on their mortgage payments are on the rise across the nation. Unsuspecting homeowners need to beware of foreclosure scams artists who make false promises to save their homes. Instead, they cause financial damage, heartache and hardship.  If you are facing possible foreclosure and are seeking professional assistance, you need to make sure the company offering to help you is legit. You need to know who you are dealing with and what you are paying for.  

If you are aware of the games that professional foreclosure scam artists play, you are less likely to fall prey to their tactics. Foreclosure scammers are bottom feeders and when it comes to honesty, integrity and decency, they have none. They will lie, exaggerate, apply pressure and basically do and say whatever it takes. 

Foreclosure Scam Tactics

Foreclosure rescue scammers  use basic tactics under already unfavorable conditions in order to gain their victim’s trust. They stop at nothing and will employ the use of lies, misinformation, exaggeration pressure, fraud, deception and even forgery. The desperation a homeowner who feels when their dream of home ownership is slipping away makes them an easy mark for foreclosure scams. Foreclosure scam companies will often charge hefty upfront fees or turn around and steal the homes right out from those they promised to help and then vanish into thin air.

If you are aware of the games that professional foreclosure scam artists play, you are less likely to fall prey to them. Foreclosure scammers are bsically bottom feeders. When it comes to honesty, integrity and decency, they have none. 

Typical Foreclosure Rescue Scams to Look Out For

Desperation and despair can cloud one’s judgment and homeowners who are already under emotional duress, often lack proper information about what to do in the pressure cooker situation of possible.

Here are a few common foreclosure scams homeowners need to to look out for:

• The Bait-and-Switch – This is when you sign away ownership of your home. You are told by the foreclosure scammer that you are signing documents for a new loan. However, you will be paying the mortgage without owning the home. The scammer tells the homeowner that he will bring the mortgage current but needs a few documents signed that protect his interest and then gives the foreclosure scam artist ownership of the property.
• Phantom Assistance – These are the foreclosure scammers who claim to know all the ins and outs and what to say to lenders in order to stop the foreclosure process. They give homeowners a false sense of hope, which prevents them from seeking qualified help elsewhere. Foreclosure rescue scammers often charge ridiculous fees for phone calls and basic paperwork the homeowner could’ve easily done on their own for free. The foreclosure scammer may also promise to represent the homeowner but will not follow through. Often times, the taken homeowner receives too little or no help too late to prevent foreclosure from happening.
• The Bailout – The homeowner signs over the deed believing that they will be able to remain in the house as a renter or eventually buy it back form the buyer over time. Typically, the terms of the deal are so harsh that it is nearly impossible for the homeowner to buy their property back, which was why they did the deal in the first place. In the end, the homeowner is left in the cold and the buyer skips off with most or all of the original homeowner’s equity.

A Few Ways to Avoid Foreclosure Scams

Here are a few helpful tips to avoid foreclosure scams:
Don’t pay anyone who claims to stop foreclosure. You can stop the auction yourself and there are several foreclosure assistance programs that offer free assistance. 

Never sign anything that you don’t fully understand.

• Never feel pressured into signing anything. Take your time
• Never make mortgage payments to anyone but your lender.
• Never sign over the deed to your home without talking to your attorney or title company first.

There are legitimate companies and organizations that are willing to help homeowners who are facing possible foreclosure such as Hope Now  and HUD.  Ask the right questions and never sign anything you are unsure of.

For more information about foreclosures, foreclosure scams or foreclosure properties for sale in Charlotte, North Carolina, contact Leigh Brown - Charlotte, NC’s  foreclosure real estate expert.