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Foreclosure
Scams - Avoid Mortgage and Refinance Scams
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MORTGAGE - FORECLOSURE SCAM
NOTICE AND WARNINGS
Beware of
foreclosure scams! Solutions that sound too
simple or too good to be true usually are. If
you're selling your home without professional
guidance, beware of buyers who try to rush you
through the process. Unfortunately, there are
people who may try to take advantage of your
financial difficulty. Be especially alert to the
following and contact YOUR
OWN ATTORNEY.
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Equity skimming. In this type of scam, a
"buyer" approaches you, offering to
get you out of financial trouble by promising to
pay off your mortgage or give you a sum of money
when the property is sold. The "buyer"
may suggest that you move out quickly and deed
the property to him or her. The
"buyer" then collects rent for a time,
does not make any mortgage payments, and allows
the lender to foreclose. Remember that signing
over your deed to someone else does not
necessarily relieve you of your obligation on
your loan. |
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Phony counseling agencies. Some groups
calling themselves "counseling
agencies" may approach you and offer to
perform certain services for a fee. These could
well be services you could do for yourself, for
free, such as negotiating a new payment plan
with your lender, or pursuing a pre-foreclosure
sale. If you have any doubt about paying for
such services call a HUD-approved housing
counseling agency. Do this before you pay
anyone or sign anything. |
HERE ARE SOME PRECAUTIONS TO
TAKE
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Don't sign any papers you don't fully
understand.
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Make sure you get all "promises"
in writing.
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Beware of any loan assumption where you are
not formally released from liability for your
mortgage debt and contracts of sale.
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Check with a lawyer or your mortgage company
before entering into any deal involving your
home.
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If you're selling the house yourself to
avoid foreclosure, check to see if there are
any complaints against the prospective buyer.
You can contact your state's Attorney General,
the State Real Estate Commission, or the local
District Attorney's Consumer Fraud Unit for
this type of information.
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DO NOT USE AN ATTORNEY
SUGGESTED BY THE BUYER OR BANK. FIND
YOUR OWN ATTORNEY - THERE ARE PLENTY.
REMEMBER THE FOLLOWING ABOUT
FORECLOSURE
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Don't lose your home and damage your credit
history if you can help it.
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Call or write your mortgage lender
immediately.
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Stay in your home to make sure you qualify
for assistance.
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Arrange an appointment with a HUD-approved
housing counselor to explore your options.
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Cooperate with the counselor or lender
trying to help you.
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Explore every alternative to losing your
home.
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Beware of scams.
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Do not sign anything you don't understand.
And remember that signing over the deed to
someone else does not necessarily relieve you
of your loan obligation.
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Act now. Delaying can't help. If you do
nothing, You will lose your home and your good
credit rating.
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See
Bankruptcy or
Our Credit Center
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ADDITIONAL FORECLOSURE RESOURCES INCLUDE
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