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SCAMS ABOUND WHEN FORECLOSURE FEARS SURFACE
It is annoying to think there are people out there who hope that you will be unable to make your mortgage payments. They are ready and willing to rip you off, if you let them. Follow these tips to avoid being victimized.
First, be aware that there are many phony counseling agencies. They look legitimate and act professionally, but they are not legitimate or professional. Beware of any "counseling agency" that approaches you. They have probably found out that you are in danger of foreclosure or have begun foreclosure proceedings. They will offer all kinds of solutions, none of which are free. If they offer to renegotiate a new mortgage payment with your lender, understand that this is something you can do yourself. You don't need any agency to do it for you. See the end of this article to learn how to find a real counseling agency. |
If someone approaches you and offers to pay off your mortgage or give you money when your property is sold and wants you to move out and deed the property over to him or her, don't do it! In this scam, if you fall for it, the scam artist does not make any mortgage payments, and the house eventually goes into foreclosure. Generally, the scammer collects rent on your house for awhile and pockets the money. Signing your deed over to someone will not get you off the hook. You will still be responsible and the foreclosure will end up on your credit report. It is much better to deal with the lender or a HUD approved housing counseling agency.
If you decide to sell your house to avoid foreclosure, watch out when a potential buyer tries to rush you through the process through intimidation or excuses of any kind. If a buyer makes an offer, get it in writing. And never sign a document that you don't completely understand.
When you try to sell your home to avoid foreclosure, check with your state Attorney General's office or the Real Estate Commission for Consumer Fraud to see if there are any listed complaints about your prospective buyers.
If you are considering allowing someone to assume your loan, you must make sure that you are truly released from responsibility for the mortgage debt and any contracts. The best way to do this is to speak with a lawyer or your mortgage lender.
If someone comes along with a deal that sounds too good to be true, believe your instincts. Most likely, the dealer isn't being genuine and you'll be the one forced to deal with the mess that gets left behind.
HUD Agency Contact Information
The U.S. Department of Housing and Urban Development (HUD)
451 7th Street S.W.
Washington, DC 20410
202.708.1112
TTY: 202.708.1455
www.hud.gov
800-569-4287
800-877-8339 (TTD)
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