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All Things Pondered Here

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Foreclosure Recovery

Mortgage Scammers prey on People in Foreclosure, Promising to Save Your Home

July 29, 2008 by davidarticle

The experience of foreclosure is bad enough without mortgage scammers preying on you. When the foreclosure process begins, it is a matter of public record and enough information is published for the scammers to find you and promise to save your home with their unique, creative financing program.

One well known type of scam is the bailout, also referred to as equity stripping. A person or company claims to be able to help you keep your home. They know you’re in foreclosure and public records have given them enough information so they know you have some equity in your home. They talk you into selling your home very cheap; the sale is to be temporary, just while you get your finances back in order. The company pays the

mortgage payments and you pay them rent to stay in your home and you have the option to buy back the home in the future. This could be a good situation if your financial situation is corrected quickly and the company is reputable. You keep your home and the company makes a profit for their services.

Of course, the above scenario is one used by many scammers who have no intention of selling your home back to you. They get a mortgage, pay off all the underlying debt on your home and you sign a one or two year lease with option to purchase at the end of the lease period. The lease they have you sign is very confusing; this is one tactic used when conning the already distressed and overwhelmed homeowner. The lease is written so you will not be able to meet all the terms; for example, the payment ends up being higher than anticipated and default is inevitable. You default, the company evicts you and they sell your home for closer to market value and a huge profit. If your home does not have much equity, the company simply tells you they have taken over your payments, when all they’re really doing is taking your rent money as pure profit and allowing the foreclosure to run its course.

If you are in foreclosure, there are reputable companies who can be of assistance; just be cautious as to how the business is conducted. Don’t fall for promises or guarantees like “I will save your home” or “I will get your

mortgage payments cut in half.” Never sign the title over to another person or company. Do not sell your home without being released of your mortgage obligation. Be sure you understand all the documents you do sign and be aware of what your rights are; as well as what rights you are agreeing to give up.

This article was written by David Smith of U-Move-On, a company who helps people find the best solution to their foreclosure problem. They provide the resources and services for help with the entire foreclosure process, credit restoration, finding another nice home, moving expenses, legal help and more. There is no complicated contract to sign and you do not quit claim interest in your home.

Contact:

David Smith, Founder

400 Ann Arbor Rd #185

Plymouth, MI 48170

734-756-6050

Email: umoinfo@umoveon.com

Website: https://www.umoveon.com


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Filed Under: Mortgage, Real Estate Tagged With: Add new tag, Bankruptcy, Consumer finance, Customer Service, Foreclosure, Foreclosure Recovery, Mortgages, Real Estate, Real estate foreclosures, Short sale

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