Category: foreclosure

Mortgage foreclosures have always been a nasty reality in the world of personal finances. However, with the advent of creative financing and the financial climate of today foreclosures have exploded. This foreclosure explosion in the home market has not only jeopardized the personal finances of the individual, but has undermined the global economy as well. Nothing is quite so sad as a dream home being foreclosed upon and being part of a foreclosure action.

Therefore, it is critical that the individual do their utmost to avoid foreclosure. This avoidance of foreclosure can happen in a number of ways. Some of those ways include trying to get refinancing to lower one s interest rate, scrutinize one s own financial situation with the possibility of cutting back on expenses or taking on a new job, talk with the financial institution that holds the mortgage, etc.

However, the danger that one needs to be sensitive to is, if the possibility of foreclosure looms on the financial horizon, being aware of foreclosure scams. Subsequently, it is important to know what foreclosure scams are being practiced and how to best avoid foreclosures scams.

Examples of Foreclosure Scams

One example of a foreclosure scam is an agreement that is offered to an unsuspecting struggling homeowner. This agreement legally binds the two parties together and calls for the homeowner to sign their home over to the scammers.

The apparent appeal of this scam is that the homeowner then pays rent and the scammer will then pay the mortgage. In addition, the rent is usually a lower payment than the mortgage payment. The bogus promise to this scam is that the homeowners rent is applied to the person’s mortgage.

Unfortunately, this deal sounds too good to be true and it is. This is because the scammer, who has the signed title, sells the home.

How to Avoid Foreclosure Scams

The first rule of thumb in one’s effort to avoid foreclosure scams is to be knowledgeable. This knowledge on how to avoid foreclosure scams requires investigating various mortgage foreclosure offers and not signing any agreements until one knows completely what is contained in the contract.

In addition, another way to avoid foreclosure scams is to consult with trusted professionals before entering into any mortgage relief concerns. Therefore, it is important to consult with attorneys, real estate professionals or certified housing counselors.

Additionally, it is important to realize that foreclosure help can be provided at no cost to the individual who trying to prevent any possible foreclosure. Therefore, sound advice in keeping from being scammed is to beware of a plan that requires the expending of large amounts of money to avoid having to go into foreclosure.

If a family or individual is in jeopardy of going into foreclosure on their home, it is important to know that there are a number of resources available to the individual to help avert this serious outcome. Some of those resources include working with the mortgage company that owns the lien on the home, private consumer groups and the government.

Specifically, when looking for government help to avoid foreclosures, it is important to know what resources the government may offer. Some of those resources include informational strategies that may help an individual avoid foreclosure. In addition, some options of government help to avoid foreclosure may be practical in nature.

Information Provided By The Government To Help Avoid Foreclosure

One of the most powerful tools that the government provides to help avoid foreclosure is information. That is because information is not only power but also gives the individual facing foreclosure a number of options that they may avail themselves off.

For example, this information provided by the government to help avoid foreclosure is practical and sound advice. Some of that advice includes being in discussions with the mortgage company that holds the lien on the home. In addition, the practical written pamphlets offered by the government include advice on budgeting to help meet the mortgage payments, delineating the rights that the mortgage owner has and utilizing other assets that might help to bridge the gap in one s budget.

Also, the government offers tips on their website that expose certain practices of predators who take advantage of a homeowner s predicament. Specifically, through government brochures and websites, the government exposes certain scams in which these individuals prey on homeowners who are in arrears with their mortgage. This information helps the homeowner in a mortgage crisis to avoid foreclosure scams.

Often, these foreclosure scams promise the homeowner to intercede on their behalf. They say that this is accomplished by having the homeowner sign over the title to their property. Also, the scam calls for the homeowner to then rent their own home from the scammers.

Practical Help From The Government

Additionally, one very practical measure of government help to avoid foreclosure is to provide the service of working with a HUD counselor. HUD is the acronym for Housing and Urban Development.

In particular, this counselor provides, at no cost or at a minimal fee, a variety of benefits. Some of those benefits include counsel to help the individual understand the law and the options available. In addition, these counselors will help with budget issues as well as mediating between the mortgage company and the home owner.