Monday, February 26, 2007

Mortgage Foreclosure Scams Part 1 of 7

Okay, so foreclosure scams are not something new, but the reason I am bringing them up now - with so many new homeowners stretched beyond their financial means, trillions of dollars in ARMs about to "reset" within the next year or so, there is a great chance that many of those homeowners will fall victim to foreclosure scams. While it may not be news to anyone that the predators are out there - and successfully robbing homeowners of their life savings, their equity, and their houses, it is the duty of all honest consumers and professionals to educate themselves to the tactics that are being used, in order to better protect your clients, and yourselves.

It is important to remember that, like every other crime, you must understand the criminal. Mortgage fraud is no different, and the crime should be understood by those who intend to avoid being a victim. If you feel that your home may be in danger of foreclosure, call the company that services your mortgage first. Let them know exactly what your situation is. Don't be afraid to talk to them about what you can and can't afford, and they may be able to restructure your loan for you if your situation is right for it. Possibly they can offer a temporary solution to help you catch up, or could refer you to a legitimate resource for help. They may not offer any of these solutions, but call them first. It is your first step in avoiding foreclosure.

If you have no other solutions at hand, at least be aware of some of the scams that are out there, and what signs to look for in avoiding a predator. We will explore some of these signs, and the tactics that are used in swindling homeowners out of their equity and their home, and how they can even hold you financially responsible for the mortgage payments.