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Homeowners with financial issues are often facing foreclosure and trying to avoid bankruptcy. Unfortunately, this situation can leave you vulnerable to unscrupulous scam artists who often take advantage of homeowners who are unable to make their mortgage payments. Understanding these common scams and how they work can help you avoid becoming a victim.

How Foreclosure Scams Work

While there are a variety of foreclosure rescue scams targeting struggling homeowners, most begin with a piece of mail offering a way to save your home. These scam artists generally pose as real estate investors who are interested in buying your property, and would be willing to rent it back to you for a fair price. During the process, the “investor” will likely try to convince you to transfer the title into their name.

foreclosureIn some cases, the so-called investor will have an accomplice who poses as a buyer, applying for and getting approved for a mortgage. Everything will seem legitimate until the closing, when the new mortgage will be used to pay off the outstanding balance and the scam artists keep the rest. When they default on the new loan, the homeowner loses their house and any equity they’ve built up in the property.

How to Protect Yourself From Foreclosure Rescue Scams

While an investor may be legitimately interested in purchasing your home, it’s always best to research their background before agreeing to a sale. Look for complaints from previous homeowners, and find out how many deals they have successfully closed. When you’re facing foreclosure, the best approach is to consult with a skilled bankruptcy attorney who will identify all your legal options and may help you keep your home.

 

Facing foreclosure may seem like a hopeless situation, but a skilled bankruptcy attorney can help. As a full-service law firm serving clients throughout the Rochester, NY, area, John D. Wieser Esq., PC has the expertise to protect your rights and help you reclaim your life from debt. Visit them online for more on their real estate law services, or call (585) 328-0660 to schedule a consultation with a member of their firm.

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