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| More rates and news from Avoid Foreclosure Scams
(The increasing amounts of foreclosure and mortgage delinquencies that have been mounting across the nation have been making headlines lately. )
Many officials, banks and lenders are worried about the fact that we could continue to see a wave in foreclosures during the next year.
And to make all of this worse, the increasing amount of foreclosures that are occurring is also spurring an increase in the amount of foreclosure rescue scams out there, that claim they will save you from foreclosure only to make the troubled homeowner’s situation much worse than it already is.
People who are facing foreclosure could be solicited by all sorts of companies claiming they can save them from foreclosure, so homeowners need to be on the lookout for these types of scams.
A December 7, 2006 article by Gerri Willis of CNNMoney.com, “How to avoid foreclosure rescue scams,” explains how to spot a scam and how they work so you will not become the next victim.
“More than 1 million borrowers have seen their homes put in foreclosure so far this year. And with more foreclosures, ‘foreclosure rescue’ scams are also on the rise.”
There are some areas around the nation where we are seeing more of these scams and foreclosures than in other areas.
“First, let's take a look at what the trends are. We're seeing triple-digit percentage gains of foreclosures from last year in places like Nevada, Wyoming and Alabama. Generally, areas under economic stress tend to have more foreclosures.”
“As a general rule of thumb, foreclosure rates tend to go up in colder months simply because fewer houses are sold, according to Rick Sharga of RealtyTrac.”
So, as it begins to get colder and colder out, we should see more foreclosures across the entire country.
Foreclosure scams are generally people or companies who claim they will save your house or pay off your mortgage. Beware of anything that seems too good to be true.
“In one foreclosure scam scenario, you - the homeowner - surrender the title to your house thinking you'll become a renter and buy the house back over a few years. For the most part, you'll lose your house and won't be able to buy it back...and the scam artists walk away with all your equity. Sometimes homeowners just sign a bunch of documents, not even realizing they've signed over ownership of the house.”
“In other cases, scammers will call themselves foreclosure consultants. They'll promise to persuade your lender to negotiate, or they promise to find a buyer for the house.”
If you feel as if you are falling behind on your mortgage, the first step is to contact your lender immediately, because they can probably help you fix the situation. Then, be extra cautious of any companies like the ones described above.
“Be wary of marketing procedures. Don't trust anyone who uses flyers or solicits for business door-to-door. Be suspicious of offers to lease back your home, so you can buy it back over time. These offers are weighted against you.”
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