Those who are scamming you always claim that they can solve your debt problem or stop the foreclosure from happening. They will use deceptive tactics to obtain ownership of your home for a fraction of its market value. This will not only leave you homeless, but you will still be the holder of the mortgage that is in foreclosure.
If you are struggling to make payment, it is important that you contact your lender immediately. This will help prevent any potential problems happening later on. Lenders will usually work out a new payment plan with you.
If you are facing foreclosure it is also key that you stay aware of your rights in order to keep yourself protected.
Your lender will file a record of foreclosure if it gets to a necessary point. This is called a “lis pendens”. The county clerk’s office will publish a list of all the recorded foreclosures. This is how a scammer will find you. They will find the list and act upon naive homeowners.
Be aware if you are contacted by mail, telephone, or even by a knock on the door. Sometimes scammers will even target entire neighborhoods with marketing tactics.
These predators will try to convince you that they want to “rescue” you from foreclosure. They will offer you a number of fraudulent solutions. These may include buying your home so that you can pay off your mortgage and live in a renter home, paying your mortgage in exchange for temporarily holding the deed to your home, asking you to put the deed to your home in another person’s name, making a low-cost loan to you so that you can pay off some of your mortgage, or they may say that they want to negotiate on your behalf with your lenders.
If you agree to any of these solutions, the scammer will then steal or home or equity.
They do this by convincing you to sign a contract for the sale of your home to the scammer, convincing you to sign a contract with a buyback agreement that states you must pay a large fee, charging you high interest rates or fees, actually buying your home from you, or will lie to you about the length of time before your house goes up for foreclosure. According to NY.gov , ” In some cases you might keep ownership of your home, but pay so many fees or so much interest that you are broke and have no money for future payments.”
You can avoid being scammed by never doing business with someone who calls, mails, or contacts you. You will want to contact and work with your lender directly. Always be aware, and contact a lawyer when you are in a situation like this!
Source: New York State