Homeowners faced with foreclosure will often become targets of fraudulent solutions to their financial difficulties. Dishonest individuals will contact struggling debtors by mail, phone call, text message, or email with deceitful offers to eliminate mortgage debt. Any business that is capable of offering legitimate assistance will not make unsolicited contact. Our South Florida foreclosure attorneys have outlined the top four foreclosure scams that individuals should be on the lookout for to prevent being taken advantage of.
Transferring the Deed
An unscrupulous lender may propose new financing in an effort to save the home from foreclosure. In this scheme, it will be required that the deed to the property be signed over as a temporary measure to stop the foreclosure in exchange for new financing terms. Upon transfer of the deed, the crooked loan company will likely borrow against or sell the property for their financial gain, leaving the original homeowner out of the transaction. The new owner is able to continue collecting payments and rent with the option to evict the residents for missed payments.
A similar scam also involves the transferring of the deed to a new buyer, freeing the homeowner of the mortgage. The new property owner may choose to collect rent payments while pocketing the money and allowing the home to be foreclosed on.
Illegitimate Counseling Agencies
Fictitious agencies will contact individuals offering services for a fee that can otherwise be completed independently without charge, including renegotiating the payment plan with the lender or initiating a pre-foreclosure sale.
Homeowners may be approached by another lender offering to refinance the mortgage and lower monthly payments. However, in most cases the new monthly payments only cover the interest, leaving the principal amount due at the end of the loan term in one lump sum. This will once again leave the mortgage holders in a position where they are unable to afford the payment, thus losing the home.
Hiring a Foreclosure Defense Attorney
Upon hiring of a foreclosure defense attorney, an investigation will begin in which the case is reviewed and a thorough defense plan is established. A seasoned attorney can prevent having a deficiency judgement filed for the remaining mortgage balance.
If you or someone you know is facing foreclosure, contact (http://grahamlegalpa.com/contact/) Graham Legal, P.A. today. Our experienced South Florida foreclosure attorneys will fight for homeowners to be given opportunities from the bank that they deserve and are legally entitled to.