If you think your home may be foreclosed upon there may be help. Be careful with the help you choose to seek, as during hard times there are many unsavory characters willing to take advantage of your miserable state for their own benefit. Well meaning friends may offer you bad advice and professionals in the guise of well meaning investors, attorneys, mortgage brokers and realtors may all prey on your innocence. There are also foreclosure prevention companies out there that as long as you investigate them, may be able to help you out of the hole you are in.
If a foreclosure prevention company suggests a procedure that sounds too good to be true, it is advised that you do not take their word at face value. Predatory lenders may suggest the following strategies for staving off foreclosure, not fall victim to any of these scams:
- Foreclosure prevention companies that charge you substantial fees for providing what a HUD sponsored housing counselor will tell you for free
- Companies that say they will pay off your mortgage if you sign over the deed to the house and leave. Do not do it as they will steal your house and you will still have to pay off the debt
- Foreclosure prevention companies that say they can arrange that you still live in your property as a renter, the deal is you sign over the deed to your home.
If you have already been approached by a foreclosure prevention company with any of these offers, make sure to contact a HUD-approved housing counseling agency so they can give you sage and sound advice for free. If the HUD housing counselor tells you that you were about to be scammed, please report the company to the proper state authorities so other innocent people are not put at risk.