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John Alexander Foreclosure Scam

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Many of you are already aware that different types of unfortunate scams are going on each day pretty much but are you aware of the fact that there is yet another scam to worry about? Foreclosure scams are now occurring and it is so very important that you begin right now, learning more about this type of scam in hopes that you can prevent this from ever happening to you, because it is just another terrible crime out there that some idiot is committing. Right when you think things just could not get any worse, in walks yet another very unfortunate scam that just totally catches innocent people completely off guard, so do not let this sort of thing happen to you ok.

Throughout this article I am going to discuss with you some of the important things that you should definitely look out for so that you do not become another foreclosure scam victim because these guys really are slick and will completely and utterly rip you off the first chance that they think it would be possible.

These types of scams happen when a foreclosure notice for a home has been placed in the local newspaper. There are criminals out there on the look out for their next victim so you need to be on your guard. During a foreclosure scam the person intending to rip you off could walk right up to your front door or possibly telephone you so you do need to be very careful.

One of the forms that a foreclosure scam can take is that they will pretend to be some kind of professional who claims to have seen your foreclosure notice in the local newspaper and are there to help you in your hour of need. Unfortunately many people in this situation are already heartbroken at the prospect of losing their home that they won't be thinking straight and may just buy into whatever they are told without a second though. Don't let this happen to you.

You need to be aware that people who cold call you or just turn up at your door may be out to rip you off. They will claim that they are able to save your home but how do you know if that is true or not? They may even try to get some personal information from you or even some money. Don't just throw money at them out of desperation to save your home.

If you don't take good care you could end up losing money, valuable possessions or even your home to these people. Make sure that if anybody does approach you while you are facing foreclosure that you know exactly what to ask them to make sure that they are genuine. It would be wise to start researching now, even if you aren't facing foreclosure, just in case it ever does happen to you so that you are fully prepared should the time ever come.

John Alexander Foreclosure Scam

The ongoing mortgage crisis means that the number of foreclosures is increasing. With homeowners desperate to avoid foreclosures, there are many scams flourishing that prey on those homeowners that desperately want to hold onto their homes. How do you know if an offer for assistance is legitimate? Often it doesn't take anything more than old fashioned common sense. Sometimes, however, scam artists are so misleading that it is easy to be confused.

What are the warning signs that a foreclosure company may be a scam?

Lack of professionalism. This one should be obvious, and, fortunately, many scammers fail to present themselves as professionals, and are easily recognized. Think of how most established businesses advertise. If a company does not use traditional advertising, it should raise a red flag. If you find fliers under your windshield or stuck in your door, someone cold calls your house, or knocks on your door, they are probably not a legitimate agency.

They ask for large fees in advance. It is a testament to how desperate people are to save their homes that many people, in danger of losing their homes, will pay an exorbitant amount of money to someone they have never heard of that promises to save their home. Often, the scammer asks for a fee that is equal to the homeowner's equity in the home, and the homeowner hands it over.

The company asks you to sign your deed over to them. They often have excellent reasons for this, promising to sign the home back over after they stop foreclosure proceedings, and allowing you to "lease" the home from them until this occurs. Not only does the scammer get the deed to your home, which, by the way, does not release you from responsibilities on the loan, they also collect a hefty "lease" fee, at least until they evict you.

They offer to help you refinance the home. You obtained your mortgage initially, why would you need help to refinance? Typically, the scam company collects a large fee and does nothing. While they do not take over ownership of your home, like some of the more aggressive scammers, they do allow the foreclosure process to proceed. The foreclosure scam companies typically tell you not to contact your lender because they will take care of all communications. Meanwhile, they do nothing, and the lender assumes that you are a deadbeat payer.

They tell you one thing, but discourage you from reading the contract. People who are successful at operating scams are often smooth talkers. They will tell you one thing, such as negotiating a settlement with your lender, while at the same time presenting you with papers that sign your home over to the scam company.

How can you avoid being a victim of scam foreclosure companies?

Never sign anything without reading it thoroughly. Do not worry about appearing rude. Read each form completely and do not sign anything that you do not understand. Tell the person you are dealing with that you need to take the paperwork home to review it and show it to a real estate attorney. They will normally review documents for a nominal fee, and can tell at a glance if you are being scammed.

Understand that verbal agreements are non binding. Do not pay attention to what the person says, but read all documentation carefully.

Never sign a form that has multiple blanks that can be completed later, and sign your paperwork with blue, not black, ink. This helps prove that paperwork is an original and not a copy.

Never, ever, sign your deed over to anyone else. Many people fail to realize that the mortgage and the deed are two separate things. You do not eliminate your responsibility with the mortgage by signing over your deed, but you do eliminate your claim to the property.

Any threats or intimidation should be clear evidence that the foreclosure company is not legitimate.

Before entering into any agreement regarding your mortgage, take the paperwork to your current lender. They do not want you to be scammed any more than you do, and they are well versed in current scams in your area. Even if you are in the final stages of foreclosure, and feel that the lender has no time for you, ask to speak with someone in the loan or loss mitigation department and show them the documents.

Remember the same thing that we all learned as children, if something is too good to be true, it probably is.

Foreclosure scams prey on the fear that people have of losing their homes. While there are legitimate companies that help the consumer who is experiencing difficulty paying their mortgage, companies that solicit you are typically scams. To find someone that can help you remain in your home during this difficult time, contact your local HUD office. This federal program offers a variety of ways to deal with your financial problems while avoiding foreclosure. Your lending institution's loss mitigation specialists can also work with you to keep you in your home.

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About Author

Both Chris Simpson & Stephanie Larkin are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Chris Simpson has sinced written about articles on various topics from Work From Home, Joint Venture and Pets. For more information about how to please visit. Chris Simpson's top article generates over 110000 views. to your Favourites.

Stephanie Larkin has sinced written about articles on various topics from Kitchen Home Improvement, Marketing and Bahamas Vacation. About Author:Stephanie Larkin is a freelance writer who writes about topics pertaining to the mortgage industry such as a . Stephanie Larkin's top article generates over 49500 views. to your Favourites.

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