Facing Foreclosure? Watch Out for the Scams!

It is a sick world we live in, but we have to face the facts.  There are simply a bunch of greedy bastards that feed of the suffering of others.  Many homeowners who are facing foreclosure could be facing a bigger problem, the so-called rescue that was supposed to save them that ultimately destroyed their lives even more.

If anyone claims to be able to "rescue" you from foreclosure, be skeptical and make sure it is for real.  There are some legitimate rescue companies, but there are also many vultures ready to feed on you. 

The biggest one is probably "equity skimming", where an individual or company offers to take legal ownership of our home temporarily, you subsequently pay rent to the company, and down the road the company returns the property back to you as they promised.  The reality is the company rapes the home of equity by borrowing against the property, collect the rent and never pay the mortgage.  This leaves the home in foreclosure any way, only now the con artist walks away with all of the equity.

The second most common "rescue scam" is from false consulting companies.  They offer to renegotiate the mortgage with a lender or help refinance the property.  They charge upwards of $1,200 for this "service", which typically ends with them doing nothing but taking the money, stating the lender is unwilling to renegotiate or the borrower cannot qualify for a refinance.

If you are facing foreclosure, or anticipate that possibility, don't succumb to these scams.  Try to renegotiate the mortgage with your lender on your own and talk with a mortgage planner to see if there is a legitimate way out.  There are some reputable investors out there that can do a purchase/lease-back rescue with you getting the home back in the end or other options, but make sure you can trust the investor first. 

Scam artists have no ethics and know they can get rich quick of the tragedies affecting homeowners right now.  If you exercise due diligence and find someone you can trust, you will be able to avoid being taken for all the money you've got.