All too often, when a homeowner is served a foreclosure notice, they start to panic as to what they can do to keep their home. In the midst of all the commotion, they make the mistake of not consulting a foreclosure defense attorney, thinking that they are already running short on funds and hiring them will just be an additional cost. Instead, they search for alternatives that can save their home while incurring minimal expenses. That is when they fall prey to foreclosure scams, and lose any chance they have of saving their home from being repossessed by the lender.
What are Foreclosure Scams?
While seeking out alternatives to avoid foreclosure, you may have come across advertisements where a loan modification or foreclosure defense company is making too-good-to-be-true claims. They are often found on bulletin boards, in local newspapers, or random signs put up on walls or telephone poles around the neighborhood. A majority of the times, these service providers are scam artists, claiming to charge a one-time flat fee to entice people in calling them up and finding out details of their offer.
Once you contact them, the fraudulent company will make fake promises to help you mitigate your specific money issues. They will give you assurance that they will stop the foreclosure, save your home, and negotiate a better loan modification deal that will solve all your problems. From the moment you agree to work with them, they will ask you to keep on giving money as part of their negotiation process, making up stories about expenses they never incurred. Because you will be giving them money in small installments, you won’t be able to realize you have given a lot more money than you expected.
Warning Signs – How to Spot a Foreclosure Scam
You can avoid falling into the trap of these fraudulent mortgage relief companies by conducting thorough research and not letting the stress and anxiety get the best of you. Here are some warning signs that will help you in avoiding the costly mistake:
- Claims to have 100 percent success rate in getting their clients foreclosure relief or loan modification.
- Asks you to pay an upfront fee before providing any service.
- Asks you to transfer property deeds, mortgage payments, or title to them.
- Makes bold promises, such as guaranteed stoppage of foreclosure process, or an unbelievable loan modification deal.
- Pressures you into signing contracts or documents that contain complex language you are not able to understand.
- Some companies may even make claims like they have qualified attorneys. In such a case, make sure you ask them about what they attorneys are licensed in, and check their registry in your local state bar. If they hesitate in giving you this information, it is a clear red flag.
Consult with An Elgin Real Estate Attorney Today
Foreclosure is a difficult time for any homeowner, who is desperate to do anything to save their home, and this is what scam artists take advantage of. It is advisable that you seek legal counsel of an experienced foreclosure defense attorney and evaluate your options. For more information, you may call the Jackson Abdalla Law Group today at (773) 550-3853. We represent clients in Kane County and the Greater Chicago area.