3 Tips To Avoid The 'Bail Out' Foreclosure Scam
by Vera L. Cobbs
Have you fallen behind on your monthly mortgage payments despite
your best efforts? Perhaps you have even begun to dread the arrival of
a foreclosure notice from your bank. If your home is the only asset you
have left, you might justifiably be quite tempted by the idea of
utilizing any equity you have in your home to lessen your financial
distress. It's a good strategy and the right deal can give you the
breathing time you need to fix your finances--only if you don't get
scammed.
If you are facing foreclosure, then the money you've piled up in
your home's equity can be a lifesaver. Unfortunately many scam artists
are out to strip you of the equity you've built up over the years and
it's frighteningly easy for them to do so with a 'bail out' offer. An
individual or company might approach you with an offer to buy your
house and sell it back to you later when your finances improve.
Let's say your house is worth $550,000 and you've got $150,000
worth of equity. You decide to sell it to them for $400,000, which is
just about what you owe on your mortgage. This isn't a true sale in
your mind, which is why you decide to sell your home for a song. You
believe that it's only temporary and that you'll be able to buy it back
pretty soon.
The company will take out a $400,000 loan as the first step towards
draining your property of its equity. They may give you a little sum of
money and get you to sign on to a two-year lease with the opportunity
to buy it at the end of the lease period. Your situation goes from bad
to worse pretty soon. The company might begin with a low rent figure
and increase it steadily to the point where you can't afford to pay the
rent anymore.
You may not be able to meet $1500 a month but you have no choice
but to agree to the higher rent. Instead of giving you time to repair
your finances you are now worried about defaulting on your rent
payments. The company evicts you from the property once you start
defaulting on the rent, sells your $550,000 home, pays off the loan and
pockets a neat $150,000 all for just a few months of work.
In many cases the homeowner does nothing about the situation simply
because they don't realize they've been scammed. It is possible to save
your home with this strategy if you do find a legitimate company that
is willing to bail you out. Unfortunately most of the foreclosure
rescue companies out there are little more than fly-by-night operations
set up to steal money from unsuspecting homeowners. You can avoid being
a victim of this type of scam by-
1) Consulting a lawyer on any documents that you are asked to sign.
Scammers will typically present you with a 'quit deed claim' document
that's written entirely in their favor.
2) Avoiding any home sale contract that doesn't release you from
your liability to pay off your mortgage. It is possible to sell your
home and still be liable for the mortgage payments.
3) Being well informed about your rights and the legislation regarding home equity theft passed in your state.
***********************
Find out where you can get legitimate
foreclosure rescue help that you can
actually rely on. Download our report:
"The Foreclosure Rescue SCAM Guide"
Here: http://ddp1.com/go.php?5161-39
Vera L. Cobbs
You Miss 100% of The Shots You Never Take!
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