Losing your home is the last thing you want to have happen, and when faced with the daunting shadow of foreclosure, it’s hard not to grab on to any shape of hope that comes within reach – however – fraudulent franchises exist, and it is of course in your best interest to protect yourself with the knowledge needed to identify a scam when you see one. Companies may try and sell you on the ‘facts’ (a term used very loosely here), claiming they will be able to reduce your monthly mortgage payments and et cetera in order to rope you in, sometimes making your financial situation worse than what you went in with, let alone benefit you.
Scam companies have a variety of methods that they use to try grab your attention – some may send letters addressed to you personally, or go through public government documents and foreclosure listings posted the newspaper / internet / radio / television et cetera.
They may tell you a number of things in hopes of getting your money, be wary of vague wording as well as things that are, as the phrase goes, too good to be true. Here are some examples of different schemes / things to watch out for:
- Claim they will “negotiate a deal with your lender to reduce your payments / save your home”
- They advise you against contacting your lender or lawyer / credit counselor
- Insisting that you give your mortgage payments directly to them while they “negotiate with your lender”
There are a great many tricks and malicious treats in the scam artists’ bag – and some are not as easily spotted as others. First thing to do when faced with foreclosure is to contact your lender and inquire about different payment options. Be sure to find out everything you can about a particular company before you get financially involved with them at such a critical time in your life.