Foreclosure: Scams To Watch Out

Facing foreclosure can be tough and those who are going through this phase are in their most weakest. Beware of people who are out to take advantage of your situation. Take a look at these types of foreclosure scams you should watch out for:

We’ll Protect Your Credit

Late fees are clearly reflected in your credit report. Some “foreclosure consultants” may offer you to protect your credit against a foreclosure record. You would be asked to sign over your property in their name so that the foreclosure will not be accounted to your name.

 

We’ll Pay Your Defaults

Some people may offer to give you a small down payment and promise to pay off your unpaid mortgage loan to your creditor in exchange of the property. This arrangement can work if the value of your property equates to the amount you’ve defaulted. The problem with this agreement, however, is you need to be completely sure that you will be released from all responsibilities on the loan. Bear in mind, that signing up your home title to another person does not release your responsibilities on the payments you defaulted. There is a too much risk that the buyer will not be submitting any payments to your lender. This leaves you with more debts and no claim to your property at all.

 

You Can Buy Back Your Property

Some home buyers, especially those investing on home properties will make an offer to purchase your home, allow you to lease it, and give you the option to buy back your property. The only problem with this settlement is that you’ll end up selling your home lower than its real market value. Take note that if you want to buy back your property, you’re going to have to re-apply for a new loan with higher value and at a much higher interest than your existing one. Consider carefully if you’re much better off to completely sell your property at an open market for a higher value.

 

Let me handle the Selling of Your Property

You may get an offer from an agent who is willing to handle the selling of your property for your home. Watch out! A real estate agent may not have your best interests in mind. Furthermore, you can ask for the amount you want from your purchaser without worrying about any commissions being added upon your price. If you’re going to hire a real estate agent, see to it that he is a trustworthy one.

 

Refinance Your Loan With Us

You may get offers from a mortgage lending company to refinance your loan with them. Their agents can be really good at convincing people. You may be offered a low rate mortgage at the start and since you need the money, you get enticed with this offer. The catch comes in when you start paying off your monthly payment and you realize that you’re put into a worse situation than you already were in the first place. The low mortgage rate becomes unreasonably higher than what you signed up for. Thus, if you consider refinancing as an option, it is better to inquire about this from the lender foreclosing your home. In some cases, the lender will allow loan modification on behalf of the borrower which is just like mortgage refinancing without going through the whole process of re-application.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 23+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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