Foreclosures May be Slowing Down but People Are Still Vulnerable To Fraud

The number of foreclosures is slowing down a bit, but homeowners are still vulnerable to scams artists aimed at taking their money.

When faced with foreclosure, people are frightened and often don’t know enough about the process in or the laws in general to prevent the loss of their homes. And people who run scam know this so they may promise to stop a bank seizure or get modifications at a reduced rate. If it sounds too go to be true, then it probably is.

When faced with this dilemma, it is better to seek out a skilled foreclosure attorney to apply for modification or contest the bank’s final decision.

According to the Federal Trade Commission, one of the most common scams is what they call “Phony Counseling or Phantom Help.” It is a scam where an agency offers to negotiate with a bank to reduce monthly mortgage payments or stop foreclosure proceedings for a fee. These fraudsters will advise you to cut all contact with mortgage servicers, foreclosure lawyers or credit counselor while they take your money and do nothing to help you avoid foreclosure.

Another scam you may fall prey to is “Rent to Buy,” where a homeowner turns over the title to their home with the option to buy it back later. The FTC says the terms of a deal like this are so high most people are unable to re-purchase their homes.

There are a number of methods these scammers will employ to cheat a person out of their money or home. Whenever you are faced with losing your home the most qualified person to help you is a foreclosure attorney.