If you are behind on your mortgage and in danger of losing your home to foreclosure, it is understandable that you might be confused, overwhelmed, and uncertain about how to proceed. Unfortunately, there are many unscrupulous individuals who are more than happy to take advantage of you in the midst of your vulnerability. A qualified foreclosure defense lawyer can help you identify and avoid potential foreclosure scams before things get even worse for you and your family.
Companies That Come to You
When a person or company contacts you about your pending foreclosure, it means that they have something to sell you. Scammers keep up to date on foreclosure listings and reach out to desperate homeowners who are simply looking for any help they can find. Aggressive marketing and sales calls are often indicators that someone is trying to make quick money—possibly at your expense.
A foreclosure typically takes several months to complete, if not longer, but you might have a “foreclosure specialist” or “counselor” pushing you to sign paperwork immediately. It is a bad idea to sign any documents that you have not read or that you do not fully understand. You could easily be agreeing to foreclosure fraud without even being aware of what you are doing.
Rent Back Arrangements
You could also be receiving offers from a company or individual who says that they will buy your house to stop the foreclosure and allow you to remain in the house by paying rent to the new owner until you can buy the house back. In cases like these, the rent is often much higher than fair market value. Additionally, your buy-back price is likely to be far greater than the sale price at the time foreclosure. Your new “landlord” can also force you out whenever he or she chooses.
Another common type of foreclosure fraud occurs when an alleged foreclosure-prevention company says that they will re-negotiate the terms of your loan with your lender. As part of the modification, you are asked to make a large upfront payment to the company that they will pass on to the lender on a particular schedule. Too many companies, however, do not uphold their end of the deal. Instead, they might keep your money, leaving you back in default again with your lender.
Contact a Lake County Foreclosure Attorney
The best way to avoid becoming the victim of foreclosure fraud is to work closely with an experienced Libertyville foreclosure attorney from Newland & Newland, L.L.P. Call 847-549-0000 to schedule a free phone consultation with a member of our team today.