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Foreclosure Rescue Scams - The Dirty Dozen
Read On...and be "SCAM PROOF"
It is our belief that it is a horrible person that takes advantage of someone that is facing foreclosure... and it is sad to think that there are so many scammers out there cooking up new ways to kick a person while they are down. We sincerely hope this information is helpful to those who might be facing foreclosure.
Foreclosure Rescue Scam #1
Love 'em and Leave 'em ... This particular con is difficult to catch onto at first because the "expert" can show you proof of work he has done
Foreclosure Scam #2
Refinance Now ... This scam is self-explanatory. The con artist may even be a real loan officer who offers to refinance your mortgage at a low fixed rate, pay off your old loan, and give you a new lower house payment. The main targets for this scam are people who have questionable credit or who have little credit.
Foreclosure Scam #3
Fake Counseling... This scam has a feature in common with the Love 'em and Leave 'em scam (#1) in that they charge a fee up-front. These folks are a dime a dozen. They are everywhere, especially on the internet.
Scam #4
Lease-Back or Buy-Back... These scammers will use terms like • Bail-Out, • Rent-To-Buy, or • Repurchase They offer to pay off your mortgage or bring it current, but in return they ask you to "temporarily" sign over your deed to them.
Scam #5
Bait and Switch... The red flag word in this scam is "rescue loan" or "refinance rescue loan". This is a twist on the refinance scam referred to earlier. But it is not a refinance at all.
Scam #6
Equity Skimming... Equity, in simplest terms, is the dollar amount of ownership you have in your home. If you know the recent purchase prices of nearby homes like yours, you can get a good estimate of your equity.
Scam #7
Stripping Equity ... This scam is usually perpetrated on nervous, unconfident, stressed out homeowners who may not even be facing foreclosure, but are scared to death that it won’t be long until they receive a foreclosure notice from the bank.
Foreclosure Con #8
Loan Flipping ... This is another dishonest practice, but it is represented as a way to get a lot of cash out of your house. It starts out innocently enough with a legitimate refinance on your home where you end up with
Foreclosure Con #9
Loan Modification Scam... Beware of the up-front fee!!! Even asking for partial payment of the fee up-front is inappropriate. The goal here is not complicated. The scammer just wants to get as much as he can in fees before he disappears.
Scam #10
Shared Interest Scam... In this scheme the homeowner is approached with a far-fetched plan that involves transferring partial interest ("interest" in this case refers to "ownership") in the home to several different people or even to fictitious people or bogus companies.
Scam #11
Identity Theft ... You don't have to be in financial trouble to be the victim of identity theft. But some identity thieves pose as on-line loan originators, loan officers, realtors, loan modification specialists, foreclosure rescue specialists, short sale specialists.
Scam #12
Surplus Funds Rip-off ...You may think that if your home is sold at auction, you have lost everything. Sometimes, though, the house sells for more than enough to pay off the loan, the taxes, and all overdue amounts, and there is money left over. This money is called "surplus funds."
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