Tuesday, July 29, 2008

Beware of Mortgage Scams

A close friend of mine is really struggling in this economy. The job she had for 20 years has closed it's doors. She is on the verge of loosing her house and has had several unknown companies promise her that they will help her. I advised her that she needs to research every option presented to her. I did some research and found out the most recent scams that are being used and I wanted to share them.

1. Rescue Scam Option #1: The homeowner is told to sign certain loan documents that will take care of the impending foreclosure. But what the homeowner does not realize is that the documents actually sign the house over to the scammer. Then then the homeowner is still left with no house and is still responsible for the mortgage.

2. Rescue Scam Option #2: The homeowner is told that the scammer will make the payments and take care of the foreclosure, and the homeowner can rent the house until he/she is able to buy it back later. The end result is the homeowner is evicted when the scammer collects the rent, defaults on the payments or sells the house to someone else and pockets the profits.

1 comment:

Teresa said...

Thanks for the useful info!

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