Mortgage Foreclosure Scams Part 2 of 7

There are several factors that give opportunity to a predatory lender for fraud. Homeowners in financial distress are the most likely to become a victim of this type of fraud, and I'll cover a few of the ways that scams can take place, and the effects it can have on the homeowner.

One of the ways that a homeowner can be defrauded is when a distressed borrower sees an ad or sign that states something such as: "We Buy Homes", "We Buy Houses - Fast Cash" or "Cash For Houses - Any Situation, Any Condition". These companies can charge enormous fees for simple phone calls and paperwork (which could easily be done by the homeowner). Homeowners are often left with little assistance, and little time left to save their home from foreclosure before they even realize it. Many times it keeps the homeowner from seeking qualified help at all because the "rescuer" has given the homeowner a false sense of security. The "rescue" company leaves the homeowner in a situation that may have been prevented with proper intervention. This particular type of fraud runs rampant in New York, Ohio, Michigan, California, and Oklahoma.


The Better Business Bureau (or BBB) can be of some assistance if you need further information on a particular company's reputation. Again, as I mentioned in Part 1 of this series, don't be afraid to call your lender or mortgage servicing company. They may have some referrals to legitimate help, rather than choosing a "rescue" company to help you spiral into foreclosure. Be wary of any company that doesn't offer contact information other than a phone number.