Warning Signs of South Florida Foreclosure Scams
With the number of South Florida foreclosures rising, scam programs are multiplying. Many fraudulent organizations have been preying on the emotional distress many homeowners feel when facing foreclosure.
Keep your eyes open for the following warning signs when considering a mortgage loan modification or foreclosure assistance:
- High up-front fees – although many legitimate foreclosure assistance companies do charge fees, they are small and not required until after they start your case. Be especially wary of companies that require high up-front fees and claim to be government-sponsored. Government programs are free.
- Guarantees – a credit counselor cannot guarantee results because it is not their decision to make – they can only provide assistance in saving your home from foreclosure. They cannot directly make the decision and therefore cannot guarantee a favorable outcome.
- Signing over your home – the goal of foreclosure assistance is to AVOID losing your home. Signing it over to another party, even if they say they’ll let you rent it from them and eventually allow you to buy it back, defeats the purpose of foreclosure assistance.
- Stop paying your mortgage – never stop making your mortgage payments to your lender. The only time you wouldn’t pay your lender directly is if your mortgage loan modification program has you making your payments to them for monitoring purposes.
- Stop talking to your lender – you should maintain open communication with your lending agency to ensure that your negotiations are going properly and that they are aware of your circumstances.
- Signing blank or incomplete paperwork – never trust a company that has you sign blank forms. Your signature on a black or incomplete form may cost you your house.
- Urging to file bankruptcy – some foreclosure scams suggest filing for bankruptcy as the only solution to stop foreclosure. While this may temporarily stop foreclosure proceedings, they will eventually resume.
These are only a few signs of foreclosure “rescue” scams you should avoid when seeking help to save your home from foreclosure. Remember that legitimate housing counselors or mortgage modification programs will have the credentials to back them up, and not try to pressure you into using their services.
Get Legal Help Now – Contact a South Florida Foreclosure Attorney
If you are facing foreclosure in South Florida, contact the South Florida foreclosure attorneys at the Burgess Law Firm. Our legal team is dedicated to helping individuals who are experiencing financial hardships stay in their homes and preserve their credit. Our firm has the resources to work on your case during your bank’s business hours so that nothing slips through the cracks. Contact us today to schedule a consultation – 1-888-572-7770.