Thomas F. Miles, Attorney and Counselor at Law
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What are common forms of foreclosure scams?

There are several foreclosure scams out there that can take advantage of any naivety or any bad decisions. Thus it is very important to keep informed about common foreclosure scams. These are some common forms of the said scams:

Equity skimming: In this scam, the owner is approached by a prospective buyer who claims that they will take care of the mortgage and loans on the property for you or will make a payment of an amount of money after the property has been sold off. The buyer will attempt to make the owner leave the premises quickly and rush them into signing over the deed to the property; they will then collect the rent while making no effort to pay off the mortgage biding his time till the owner has to foreclose. The balloon payment:  This is another scam that singles out owners who have fallen behind on their mortgage payments and thus are desperate, the lender appears and offers to provide another form of financing that will allow the owner to make the mortgage payments while lowering the monthly payments, this is due to the fact that you will be asked to pay only the interest payments initially but at the end of the period you will be asked to repay the principal amount at once without any time to pay it off leaving the owner without many options but to foreclose.

Signing over the deed: When owners are desperate and behind on their mortgage lenders may appear that entice the owner into signing over the deed to the property in exchange for financing and stating that this is only a temporary decision but once this is done the financing promised is never delivered and the lender treats the property as their own and will use the deed as evidence to claim permanent ownership of the property. Phony consultancy agencies: False and unlicensed consulting agencies seek out desperate owners and entice them into buying their false services such as negotiations for lower mortgage payments and interest rates while in reality, they provide no such service and only leech off the owner.

Before making any decisions and signing any documents regarding property and foreclosure, it is highly recommended that you consult an experienced attorney near you.

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Thomas F. Miles, Attorney and Counselor at Law
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