Avoid Foreclosure Scams - Follow the steps

Document Sample
Avoid Foreclosure Scams - Follow the steps Powered By Docstoc
					                           Avoid Foreclosure Scams - Follow The Steps

For people who have their own home, it would never leave their mind that a foreclosure might happen
anytime. There are tons of unanticipated problems, such as getting fired, high medical bills, divorce,
death of a spouse and many more. All these can affect a homeowner’s ability to pay their mortgage
payments which of course, will result to foreclosure. If late payments continue, you may soon find your
lender repossessing your property.

There are ways to avoid foreclosure scams especially if you’ve already received a notice. The first thing
you should do is contact your lender and tell them about the problems your having and the situation
you’re in. It would help if you bring with you the financial statements or important documents to serve as
proof as to why you are having hard time paying your bills. The best to avoid this is to start doing
preventive measures before you even get a notice. Always be ready for anything, start a budget and start
putting more in your savings account. A simple tweak in your lifestyle can help you save up for your
mortgage bills.

Foreclosures will also show up in your credit report and it may stay there for several years. Not only that,
it will also affect your credit score report and other future transactions.

Here are some foreclosure styles you have learn about in order to avoid it.

       Equity stripping- this scam will involve a lender offering you a loan. The lender will force you to
        lie about your income to get the loan approved. You’ll most likely accept the loan because you
        need the money but there is no assurance that you can afford the monthly payments, which will
        land you in a property foreclosure.

       Fake counseling agencies- these agencies will negotiate a repayment plan with your lender
        then organize a pre-foreclosure house sale on your behalf. These agencies aim to mislead you
        and stop you from getting real and legit help.

       Lender scams- this is when a lender will claim to rescue you from your situations by refinancing
        your loan with lower payments. The mortgage payments will seem very low at first because
        you’re paying for the interest only, but in the end, you’ll have an extremely huge bill that you have
        to pay.

       Fake loan transactions- a lender will introduce you to a refinancing loan file that will claim to
        bring your neglected loan current. The document really has a hidden motive of transferring the
        title of your home to the company.

These are just some of the scams that you should avoid. Get an attorney to check out all the legal
documents before you sign anything. It pays to be careful all the time. Don’t wait for the notice to come to
you, be aware of foreclosure scams to steer clear from it and do whatever it takes to avoid these.

Check your free credit report now. Get your three bureau credit report and credit score instantly & get
access to daily credit monitoring, credit alerts and other resources that will assist you in understanding
credit reports and making big financial decisions.

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:26
posted:8/21/2012
language:English
pages:1
Description: For people who have their own home, it would never leave their mind that a foreclosure might happen anytime. There are tons of unanticipated problems, such as getting fired, high medical bills, divorce and death of a spouse which can affect a homeowner’s ability to pay their mortgage payments thus, the result is foreclosure.