From The Desk of Linda Strasberg

Homeowners facing foreclosure are at risk of becoming victims of a foreclosure scam. Individuals involved in such scams convince vulnerable homeowners that they can save the homeowner from foreclosure. They tell the homeowner that they have direct contact with the servicer. They advise the homeowner that there are “federal laws” that require your lender to work with them. They assure the homeowner that they can help and will most always ask for a fee.

In reality, they are not there to help the homeowner: They only want your money or your home. They encourage the homeowner to stop working with their lender, servicer and tell them that they will take care of everything.

Some common scams are:

• Bait and Switch – Homeowners believe they are signing documents for a new loan to make the mortgage current, but sign away their home and are left holding the mortgage on a home they no longer own.

• Phoney Counseling or Phantom Help – The person conducting the scam tells the borrower that he can negotiate a deal with the servicer to save the house if the borrower pays a fee first. Once the fee is paid, the person takes off with the money and provides no assistance.

• Bankruptcy Foreclosure - The rescuer promises to negotiate with the lender on the borrower’s behalf for a fee. The rescuer takes the fee and files a bankruptcy case in the borrower’s name and without the borrower’s knowledge. (A Bankruptcy foreclosure will prevent you from buying a home in the future.  You will not be able to purchase a home again for several years and without written consent by the court when  you can show the bankruptcy was due to extenuating circumstances and you will have to verify and document you are able to better manage your finances.  Bankruptcy is recorded on your credit for 10 years).