Foreclosure is every homeowner’s nightmare. The years of hard work to ensure a roof over their families’ heads are erased. Yet despite this predicament, it is saddening to note the existence of Long Island foreclosure defense scams. These cheap tricks are enforced by unscrupulous individuals to rip off naive homeowners.
You need to be aware of your rights as a homeowner as well as the cheap tricks scam artists may try to pull off.
A fake bankruptcy claim is a common scam used on most unsuspecting homeowners who are on the verge of foreclosure. At the start, a homeowner is made to pay a high cost upfront under the assumption that it would be used to renegotiate their mortgage with lenders.
However, in reality the scammer would use the money to file for bankruptcy on behalf of the homeowner. Though this may temporarily put a stop to the foreclosure, the unknowing homeowner would be left to deal with the damaging effects that bankruptcy would do to their credit.
Though it may be a common strategy advised to troubled homeowners, it may also be a scam in some cases. The rent to own scheme is used by scammers to convince unsuspecting homeowners to sign over the deed of their home.
In exchange, they would be allowed to rent and stay in the home. Unless dealing with a legitimate company or individual, the likelihood of this happening may be impossible. Be sure to check the credentials of the company or individual involved before signing over the title to them.
The recommendation of a false foreclosure should concern troubled homeowners as well. With this type of scam, a homeowner may be led to believe that a dialog with the lender is under way for the purpose of modifying the loan.
This usually would entail the payment of a large fee upfront or higher monthly expenses to be paid by the homeowner. But in actuality, the scammer would keep most of the homeowner’s money.
As a homeowner, it is important to know the warning signs of possible scams. Experts in Long Island foreclosure defense would advise troubled homeowners to be on the lookout for these unethical practices.
First, be wary of individuals or firms that make bold statements. Beware of scam artists who make grand promises as they may not only rob you of your home, they may also leave you in greater debt than before.
These unscrupulous individuals will claim to be able to stop foreclosure proceedings entirely regardless of the amount of debt you may have. Also, think twice about those who may claim to have gotten loan modification relief for all or nearly all of their clients.
Bear in mind that a reputable Long Island foreclosure defense firm would not require the payment of their fees upfront. Federal law states that distressed homeowners may not be forced to pay a company they have enlisted for mortgage assistance relief services unless they are satisfied with the outcome of proceedings. The rule also compels the disclosure of key information to prospective as well as existing clientele.
Stir clear of companies that would pressure you into signing any agreement without having to look at the fine print. You may be hoodwinked into transferring the title or property deeds to them.
Scam artists will strike at the most vulnerable point in your life, even as you face foreclosure. So make sure to arm yourself with information about how to best avoid foreclosure scams. And as always, trust only the services of a reputable Long Island foreclosure defense firm who will surely have your best interest in mind.