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Beware of Foreclosure Rescue and
Loan Modification Scams!
(pdf) – Know with whom you are
dealing. Before you hand over any
money or provide any personal
information, check out the company
or person. You can check your local
Better Business Bureau or state
consumer protection office to see if
the company or organization is
legitimate and if any complaints
have been filed.
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Equity Skimming
– A “buyer” offers to get you
out of financial trouble by
promising to pay off your mortgage
or give you an amount of money when
the property is sold. The “buyer”
may encourage you to move out
quickly and deed the property to
him. The “buyer” collects rent for a
period of time but does not make any
mortgage payments, allowing the
lender or loan servicer to
foreclose. Even though you’ve signed
over your deed, you are still
obligated to pay the loan!
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The Bailout –
You are tricked into signing over
your home’s title based on the
belief that you can stay in the home
as a renter and be able to buy the
home back over time. Unfortunately,
the terms of the buy-back are
impossible to meet, so you lose your
home while the “rescuer” gets the
equity.
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The Bait & Switch
– You are tricked into signing your
home over to the “rescuer”, thinking
that you are actually bringing your
mortgage current. The “rescuer” does
not pay the mortgage, so your home
still goes into foreclosure. You may
not even realize this has happened
until you receive an eviction
notice.
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Phantom Help –
A “rescuer” charges extremely high
fees for phone work or paperwork
that you, the borrower, could easily
do yourself. None of the “rescuer’s”
efforts save the home. This scam
gives you a false sense of hope,
preventing you from seeking
qualified help.
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Phone Counseling
Agencies – These agencies charge a
fee for services you can do yourself
for free. For a list of qualified
housing counselors, visit
http://foreclosurehelp.nv.gov/HousingCounselors.htm.
For
information on how to avoid these and
other foreclosure scams, visit
http://www.msnbc.msn.com/id/30071125/.
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