Foreclosure “Rescue” Scammers: How Do The Rip-Offs Work? (Part 2 of 4)
Foreclosure rescue scammers are experts at what they do best — taking advantage of frightened homeowners in desperate situations. Although you already have enough problems to keep you busy with trying to save your home, here is one more thing that you absolutely must do.
You must educate yourself about foreclosure scams, scammers, and how they work. Although there are many specific variations to the scams, the overall strategy of the “rescue” scammers is the same. They all offer to save you from losing your home, sometimes with very little cost or work on your part. To the desperate homeowner, that offer can seem like a gift from the gods.
Unfortunately, instead of a gift from the gods, what the rescue scammer really has in mind for you is much more like a deal with the devil.
Here is a quick summary of some of the most frequently reported scames. If someone offers to save you and your home from foreclosure, keep your ears and eyes wide open for deals that sound similar to the rip-offs below.
Rip-off #1: Just Plain Robbing You.
It’s hard to believe, but there are scammers out there who will just plain make up amazing stories about all the paperwork and red tape they are handling for you while what they are really doing getting you to sign various documents that will give the scammer title to your house. Never sign any legal document that you do not completely understand. If you don’t understand the papers that a foreclosure consultant is asking you to sign, get them reviewed by your own lawyer. If you cannot afford a lawyer (which is probably true if you can’t make your house payments), contact a law school in your city. Many times, law students (under the supervision of professors with law degrees) will help you for a very small fee, or even no fee at all.
Rip-off # 2: Buy Your Home From You, Then Rent It Back To You.
The “rescuer” will buy your house from you and pay off your loan, so now you don’t owe the bank any money. Then you just rent your house from him until times are better for you. Sounds like a dream come true, doesn’t it?
Unfortunately, that dream is really a nightmare. After all is said and done, the rescue victim finds out that scammer now owns his home, is demanding insanely high rent for it, and may even have already entered into a contract with another buyer to sell your home for considerably more than he paid you for it.
Rip-off # 3: Promise To Guide You Through The Complex Foreclosure Defense Procedures, But Do Nothing For You.
These scammers often charge extremely high fees by playing on your fears and worries. In this scam, the scammer may charge you exorbitant fees for filling out and filing simple forms that you could have handled yourself at very little or no cost. Or, the scammer may very well produce several lengthy, complicated legal documents that are full of legal mumbo-jumbo, and tell you that “you don’t need to worry about all of these pages and pages of complicated, difficult legal language. Just sign here, and we’ll handle everything for you.” Again, the goal is to convince you that defending your home against foreclosure is impossible to handle by yourself so that the scammers can justify collecting huge fees for dealing with “all the complicated legal issues” for you.
It is outrageous that, at the same time you are struggling with financial disaster and possibly losing your home, you must also protect yourself from the rip-off artists who are preying on homeowners in trouble. Don’t believe any of the stories the scammers will try to tell you. Try to relax.
Remain calm, and know that you can protect yourself and your home. All you need is a little knowledge and the willingness to fight for your home. You can do it.
Be sure to also learn about the overview on home foreclosure scammers (Part 1 of this series), how to identify a “rescue” scammer (Part 3), and how to protect yourself from “rescue” scammers (Part 4).