Scams Associated With The Foreclosures

For most people, a home is one of the most treasured possessions

. Since the economy has done badly coupled with subprime mortgage loans, people are finding it extremely difficult to pay back the mortgage loans. This has resulted in quite a bit of a problem. With people losing their jobs and the inability to pay due to other financial hardships, millions of homeowners across the country have been foreclosed. Foreclosure has happened in some of highest and the lowest economy neighborhoods.

The extent of foreclosure has increased to such an extent that the federal government and banks have taken many measures such as loan modification, loan refinancing, short sale, Deed in lieu of foreclosure and many other such schemes. However homeowners arent aware of such measures that are already available. In fact Housing Department or HUD also gives free of cost consultations to those homeowners that are facing the imminent problem of foreclosure. Another way of countering the problem of foreclosure is bankruptcy. This can also help the homeowners what they require.

In all the states across the country, there is state specific measures as well as the federally administered HAMP and HAFA which are available to the home owners that are distressed, cant pay the mortgage loans and would like some solutions to their problem. Since the level of awareness is so low, there are many fraudsters that are also operating in the market and have devised some ingenious schemes that dupe the distressed homeowners.

If a company asks the homeowner for upfront fees before providing any kind of services, then the homeowner should walk away from such a company. They are nothing more than scammers that will walk away with money before solving the problem. However there are legitimate companies that do charge fees for getting all the work done.

There are companies that charged hundreds of dollars for just making a few phone calls and shuffling some papers. Also remember the mortgage modification can be done by the lender. Any changes in the loan can only be made by the original lender. Therefore approach them. If a company or a person says that they can do it for you, then dont trust them. Also approach real estate lawyers that can help with the loan modification process.

Further never make payments to anyone for the loan apart from the lender. Dont let another company make the payments on your behalf. Chances are that they will fly away with your money and you will be a step closer to the foreclosure problem. Many con artists also impress the homeowners to let them handle all the communication with the bank. Never let this happen. Always ensure that you have the communication channels for talking with the bank always open. Even though the mitigation department of the bank is tough to get hold of, never trust another person to do it. This can be costly and the homeowner will be at square one and facing foreclosure that they wanted to avoid at the first instance.

by: Julie Thompson

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