When you are behind on your mortgage, the last thing you need or want to deal with is more pain and frustration. Watch out for scams and scam artists who may be trying to convince you they are able to help but end up taking your home, money, and dignity.
Here are some scams to be very aware of:
1. Lease/buy back
Someone may offer to buy your house and allow you to stay as a renter and eventually be able to “buy back” your home. Although this may be a legitimate offer, the terms of the agreement may be so demanding that it eventually becomes impossible to buy back your own home. You could end up being evicted from the home and the person who was “helping” you, walks away with the deed to your home and any equity you have put into the property.
2. The bait-and-switch
The scam artist convinces you that you are signing documents bringing your mortgage up to date, canceling any late payments. But you could really be signing away the deed to your home. Home owners that have been scammed this way in the past, usually do not even know until they get an eviction notice.
3. The Foreclosure prevention specialist
This if a fancy term for a scam artist who makes you pay them money to make a few phone calls that you can do yourself. It does not delay a foreclosure or help in any way. It can in fact delay you from getting the actual help you need. It also gives the home owner a false sense of hope because in the end, you will still have to make the calls or jump through the hoops yourself. It can also put your financial information in the hands of people who may not only charge you money for something that you can easily do, but may end up using your information to steal your identity.
Please beware of many scams associated with trying to “help” people stay out of foreclosure. Be on your guard, make sure you take notes and get names of who you talked to and when you talked to them. Do not give your bank account information out.
If you are upside down on your mortgage and are looking into your options in Northern Virginia, please give our team a call. We can walk you through the process and we have much experience with making it as painless as possible.