Foreclosure “Rescue” Scammers: How To Recognize A Scammer (Part 3 of 4)
If you are facing foreclosure, don’t allow dishonest, lying foreclosure scammers offering to “rescue” you from foreclosure turn you into their next “kill.” Here are some examples of how the scammers lure you into their traps:
The scammer contacts you by telephone, mail, or even knocks on your door, offering to solve your foreclosure problems. Legitimate foreclosure consultants don’t seek you out and make “rescue” promises. You have to make the first contact with a legitimate company or service.
Foreclosure scammers often use TV or newspaper ads. Not every foreclosure consultant who advertises is a scammer. Just be sure to consider all of the other guidelines if you contact a foreclosure service because you were attracted to its advertisement.
The scammer is smooth-talking (think of the popular image of a used car salesman) and preys upon your desperation; for example, offering you “secrets that only the insiders know.”
They often use “affinity marketing” — Spanish-speakers marketing to Spanish-speakers, Christians to Christians, senior citizens to senior citizens, and so on. Not every foreclosure consultant who is like you in some dimension is a scammer, but be aware that this “somebody like me” technique is popular with scammers.
Testimonials about great service can be very convincing to a homeowner in trouble. However, ask for names and phone numbers of those happy previous clients so that you can check their references. Be aware that this won’t always flush out a scammer; they can simply have one or more accomplices who answer phones and play the role of a happy homeowner whose home the scammer saved.
They claim the process will be quick and easy. Dealing with foreclosure is never quick or easy.
They use phrases such as: “Stop foreclosure with just one phone call” or “I’d like to buy your house” or “Do you need instant debt relief and cash?” Just like Mom said, if it seems too good to be true, it probably is.
A legitimate foreclosure consultant will share the details of what is happening, plus will often ask you to contribute to various stages of the foreclosure prevention procedure. Don’t trust anyone who claims that they can “take the whole process off your shoulders and handle everything for you.”
Scammers often ask you to sign a power of attorney (a legal document that gives them the authority of sign legal documents in your name). Never give anyone else the power to sign foreclosure documents on your behalf.
Many scammers claim to be government agencies. This can be as simple as calling themselves the “Federal Foreclosure Prevention Center” or some similar name that sounds like it could be part of the government.
Scammers often tell the homeowner to cease all contact with the mortgage lender. Don’t ever follow this advice. It will almost certainly make your situation even worse, because the lender will reasonably assume that you don’t care about the foreclosure. Giving up contact with your lender can also allow scammers to file documents that hurt you, without worrying that you will see what they are doing.
Don’t let all of the above warnings scare you into doing nothing instead of risking getting trapped by a foreclosure scammer. There are a lot of legitimate sources of help out there for you. So, just avoid the scammers, and get started right now on getting the information you need on how to save your home.
Be sure to also learn about the overview on home foreclosure scammers (Part 1 of this series), how the scams work (Part 2), and how to protect yourself from “rescue” scammers (Part 4).