Foreclosure Scams You Need To Know
The annual foreclosure statistics are going through roof due to a
faltering housing market together with an exponential increase in
consumer debt. Not only are foreclosure numbers going up in San
Diego and other areas of California, but the entire Nation
experienced a RECORD number of foreclosures and bankruptcies just
last year. Anyone gong through the process of home foreclosure will
be seeking help.
Those facing foreclosure face immense emotional distress much more
so than those facing bankruptcy. The extreme stress of foreclosure
causes ones judgment to become clouded and makes it easy to fall
victim to scammers.
It always astonishes me that no matter how bad off an individual
might be there is always another individual willing to exploit that
persons suffering for their own financial gain. Con artists and
scammers have wasted no time in preying upon the extraordinary
distress of those facing foreclosure.
Scammers trying to siphon money from those facing foreclosure
primarily depend upon two scams: the equity scam and the fake
An equity scam is where an unsolicited offer is made to those facing
foreclosure to find a buyer for their homes and instantly solve
their financial problems. The individual making the offer will even
offer to take over the debt in exchange for their deed to the house.
Once the house is deeded over to the scammer, the house is then
rented out while the foreclosure proceedings remain in progress.
Foreclosure proceedings can take many months offering the scammer
the potential to earn thousands. Those who deeded over the home
ultimately do not realize the scam until their home has been
auctioned off. They are then stuck with the original mortgage debt
and the loss of their home.
With the fake counseling scam, an unsolicited offer is made for
“expert” advice and assistance in exchange for a small fee. The
“experts” will then figure out a way to decrease your monthly
payments and even reduce the original mortgage debt. What really
ends up happening is that the money is turned over to experts who
offer advice that could have found freely been on the Internet.
Often times the consulting fees for such a service can cost hundreds
and even thousands of dollars. The best a consultant can really do
is get you a short grace period, usually of no more than a few
months. Again, information for the grace period could have easily
been retrieved from the internet or by a quick trip to the local
The easiest way to avoid being scammed while enduring forecloser is
to remember the golden rule marketing; if it sounds to good to be
true, it probably is. If someone offers “expert” advice and help,
you should do a search for the information they provide on the
internet. More than likely you will find the very same information
that the “experts” have access to but without the price tag.
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