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Did you know that you can contest a foreclosure, which might result in you stopping the foreclosure process? It's true! There may be some faulty dealings on the lender's end that may result in you saving your home. So if you're in jeopardy of foreclosure, it's good to learn more.

What are some ways that you can contest a foreclosure? Here are a few:

• Demanding proof of ownership. What some homeowners are discovering when they receive a Notice of Default (NOD) is that the party that originally wrote the loan is not who is alleging ownership. This means, you can contest the foreclosure by making the party prove ownership and show an "assignment" of property transfer. If the party can't prove ownership, the foreclosure may be dismissed in court.
• Alleging fraudulent loan documents. Another method that some homeowners use is alleging that their loan documents are fraudulent. Sometimes lenders will violate State and/or Federal laws, often in the form of forcing excessive fees or interest rateswhen drawing up loan documents. If you find this out, you can contest a foreclosure as the lender may have ignored fair lending practices.

Of course, just because you can contest a foreclosure doesn't necessarily mean that you will be successful in stopping the foreclosure process. After conducting thorough research, often times, homeowners find that no laws have been broken in ownership or lending practices. However, it doesn't hurt to try. By taking this step with the help of a lawyer, youmight be able toactually heighten your chances of saving your home.

Believe it or not, property foreclosures are often at risk of con artistswho want to take advantage of a vulnerable homeowner, which is why it's good to learn how to avoid common foreclosure scams. You'd be surprised by the number of people out there who are willing to prey on the weak during a difficult time.

Don't let them take advantage of you. Instead,avoid common foreclosure scams by learning what they are.

Equity Skimming

One scam associated with property foreclosures is equity skimming. If you have reached a point of no longer being able to make payments and have put your house up for sale, you might be approached by apersonwhooffers to take over your deed and make your mortgage payments until the house is sold. Afterward, they will claim to give you the money from the sell. Instead, however, they make no payments and occupy your home until it is turned over to the courts. This means, you lose your home and your credit getsruined.

Bait and Switch

You can avoid common foreclosure scams by keeping a watchful eye for the bait and switch. This scam is similar toequity skimming in thatthe "buyer" approaches a vulnerable seller and explains that they will bring the mortgage current if the owner signs over the deed. Instead, of that happening, however, an eviction notice appears and the homeowner loses the house.

The Bailout

In this scenario, the homeowner signs the deed over to a person or "company" that claims it will pay off the debt and allow the owner to buy back the home. However, the terms of the agreement are so harsh that the homeowner ends up having to walk away from the house.

Phantom Assistance

This type of scam comes in the form of an online "company" that claims to offer expert assistance with property foreclosures. In other words, theyclaim they canwork with your lender to stop your home from going to auction - that is, in exchange for astronomical fees. Of course, nothing happens to stop the foreclosure and you loseyour money.

You can avoid common foreclosure scams by refusing to sign papers you don't understand, never making mortgage payments to anyone but your lender, and refusing to sign your deed away. By being extra caution, you can become one less victim of scams associated with property foreclosures.

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