Watch Out for Foreclosure Scams

Are you a homeowner facing foreclosure? If so you need to watch out for companies that are calling and writing you claiming that they can help you beat foreclosure. Unfortunately most of them are scams and they are looking for ways to try and make you part with what may be left of your savings.

With the evidence of foreclosure rising in our area, a recent MLS search in Prince William County alone showed over 600 detached homes that may be facing foreclosure or already in the foreclosure process, the scammers are working over time. How do they find out about the potential foreclosure? The easiest way is to read the Friday paper which lists pending trustee sales and courthouse auction notices. They also can subscribe to a number of on-line sources which post pre-foreclosure information provided by mortgage companies.

So what do you look out for?

Anyone who asks for an upfront fee

Contacts you only after your home is listed for foreclosure

Tells you to make your mortgage payments directly to them instead of your current mortgage company

Asks you to transfer the title to your property to another name

Offers to “buy” your equity and let you rent back your property

If you are facing the possibility of foreclosure the most important thing you need to do is contact your current mortgage company right away. They stand to lose money if you foreclose. As tough as it may be it is better to talk to your lender directly than wait for the sheriff to show up at your door with an eviction notice. More and more companies are working with homeowners in difficult situations look for alternatives to the foreclosure process. The mortgage company really doesn’t want your house back if it is at all possible to find another way.

For more information you can also check out this latest Publication by the Department of Housing and Urban Development.

2 thoughts on “Watch Out for Foreclosure Scams

  1. I met with SunTrust regional VP today to ask about their plans to help homeowners who are behind. They are working on plans and would rather find a solution than own the house. We will see what the FEDS do in the next few weeks

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