How can you avoid foreclosure rescue schemes?

When facing foreclosure, you are likely willing to do anything to keep your home in Gainesville. That may include taking the advice of so-called "experts" who claim they know of easy, low-cost ways of saving your home from foreclosure. Oftentimes, these are people involved is what has become known as "foreclosure rescue" schemes. They may come to you telling you they can get you a mortgage modification, or that by transferring your home's title to them (or a third party), you can continue living in it while paying rent (with, of course, the promise of being able to buy it back at a later date). Yet behind the scenes, they are trying to cash out your equity or arrange to sell your home out from under you. 

Fortunately, the Office of the Comptroller of the Currency of the U.S Treasury Department has provided some tips on helping to spot such schemes. These include: 

  • Avoid people telling you that they will let you live in the home once you sign it over: Once ownership is transferred, the schemer can evict you, charge you insanely high rent or just sell the home. 
  • Don't believe people who cite little-known laws: Some fraudsters will try to win your trust by claiming your lender has no legal right to foreclose. 
  • Don't listen to any advice telling you to stop contacting your lender: Schemers want to prey on your ignorance, and thus will tell you to avoid default or foreclosure notices and that they are handling everything. 

A final point to be wary of is people who ask for money up front before working with your lender. Legally, a company cannot collect any fees until it has a written agreement with your lender stating that any proposed changes to your mortgage have been accepted. 

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