Foreclosure Rescue ScamsPart 4) - "Don'ts" that will help you avoid Foreclosure Rescue Scams
Foreclosure Rescue Scams are in the news everywhere. I wish the President would address the nation and tell all the foreclosure rescue scam artists that he is coming after them... But until that happens, they are still out there, waiting to take advantage of you... Follow these "Don'ts" to scam-proof yourself. 1) Don't freak out!!! Panic goes before bad decisions. 2) Don't stop answering correspondence from your lender/bank. 3) Don't sign a Quit Claim Deed, also spelled as one word (Quitclaim), and often mispronounced "Quick" Claim deed unless advised to do so by your attorney 4) Don't sign any paperwork during the first contact, even if your meeting is in person or in your own home. 5) Don't sign any documents that have empty blanks 6) Don't sign anything you haven't read or had checked by someone you trust 7) Don't EVER pay an up-front fee – or even a partial up-front fee 8) Don't accept verbal offers and quotes, especially when it concerns a quote on the amount of equity you have in your home. 9) Don't EVER make mortgage payments to ANYONE other than your lender or bank. 10) Don't ignore your instincts. If it sounds too good to be true, it usually is. 11) Don't sign away your rights to surplus funds in exchange for help. 12) Don't give up and walk away/abandon your home. 13) Don't go into denial and pretend the problem will go away. 14) Don't "sign over" ownership "temporarily" under the impression that it will stop the foreclosure process or relieve you of your obligation to make payments. 15) Don't allow names to be "added" to your deed, even if yours will remain on it as well. 16) Don't cave to pressure tactics and sign paperwork that you do not fully understand. 17) Don't EVER sign a "now or never" deal. That is another pressure tactic and a sure sign of a scam. The scammer will tell you if you don't sign right now, the deal will no longer be available to you. 18) Don't deal with anyone who discourages you from getting a second opinion about their services and/or their paperwork. 19) Don't rely on the "specialist's" team for second opinions or advice. If you are being scammed, the "team" is probably in on it. 20) Don't hire expensive "representatives" who offer to collect your surplus funds for you. You can probably do it yourself. 21) Don't give personal info (social security number, income, place of employment, account numbers, credit card numbers) over the phone or over the net unless you know who you are dealing with and have checked them out thoroughly. 22) Don't ever sign an agreement that involves "temporarily" moving out of your house. 23) Don't agree to a loan that you know will be hard for you to afford. 24) Don't agree to an adjustable rate mortgage that has no cap. Actually, I believe that ANY adjustable rate mortgage is a bad idea for most people. 25) Don’t agree to an adjustable rate mortgage that adjusts for the life of the loan. 26) Don't agree to any loan that includes "products" that are not required by law or by your lender. If your lender "requires" you to buy credit insurance or life insurance, this is not an honest lender. If you need that type of insurance, you can usually get it much cheaper on your own. The only type of optional insurance that I recommend is owner's title insurance. You will pay for title insurance for the bank in your closing costs, but if you want personal coverage of your title, you must buy it yourself. It will be offered to you at the closing table. It is a one-time premium that covers you as long as you own the home. 27) Don't pay anyone who claims he can get a foreclosure removed from your credit. This is not possible. 28) Don't use services that offer "perks" like exotic trips, cars, shopping sprees, etc. 29) Don't EVER make deceptive statements about your income or your financial standing. 30) Don't agree to any form of a "buy back" deal where you are promised that you will be able to purchase your house back later. 31) Don't put off getting to work on fixing your foreclosure. You are losing valuable time. 32) Don't consider getting a reverse mortgage without informing yourself of the pro's and con's at AARP’s Website(www.aarp.org/revmort) 33) Don't respond to unexpected e-mails asking you to "confirm" your personal info (social security number, bank account numbers, etc.) – even if it appears to be from your own lender – even if they say they have money for you.
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