People find themselves deeply in debt for a number of reasons. Some have been downsized at work, while others have suffered an injury that leaves them disabled and unable to work. Before they know it, creditors are calling all the time and they stress about how they will be able to pay their bills and keep their home from being foreclosed upon. In times like these, people can get desperate, making them a perfect target for unscrupulous scammers who are willing to take advantage of people in their time of need.
Many scammers advertise on the Internet, but some are more aggressive, sending mail, leaving flyers or even calling when they see that a foreclosure may be imminent. They use deceptive phrases like “You qualify for a loan modification!” or “We guarantee you we can stop foreclosure.” As with most things in life, if it sounds too good to be true, it usually is.
Often, these scammers will ask for a fee in advance, saying that they will save your home or negotiate a lower mortgage payment for you. Others may tell you that you can give up your home, but continue living there as a renter. They claim you will be able to buy your house back later, but they either raise the rent so high that you’re forced to move out or they set the sales price so high that you can’t afford it.
Many will instruct you not to contact an attorney and this is a complete fallacy. In fact, when you’re facing foreclosure, an attorney is one of the only professionals who may be able to halt foreclosure proceedings or file for a type of bankruptcy that would let you keep your home.