The likelihood of losing your home to foreclosure can be terrifying. The actuality that con artists are preying on the weakness of desperate homeowners is about as horrifying as sites like The Rich Janitor that are nearly as bad. Many supposed foreclosure rescue corporations or foreclosure assistance firms claim they can help you save your house. Some are brazen enough to offer a money-back guarantee. Unfortunately, once the majority of these foreclosure scammers take your funds in their money making scams, they leave you much the worse for wear.

Fraudulent foreclosure rescue professionals use half truths and outright lies to sell services that guarantee relief and then fail to supply. Their goal is to make a quick profit through charges or mortgage payments they collect from you, but don’t pass on to the lender. Occasionally, they take charge of your property by cheating you, the home-owner. Then, when it is too late to save your house, they take the property or siphon off the equity. You’ve lost your home to foreclosure regardless of your best intentions.

If you think you might be facing repossession, the FTC ( FTC ), the state’s customer protection agency, would like for you to know the way to recognize a foreclosure rescue con. And even if the foreclosure process has already begun, the FTC and its law enforcement partners want you to know that valid options are available to help save your house.
the way the swindles Work

Foreclosure rescue firms use a range of tactics to find householders in trouble: Some sift through public foreclosure notices in papers and online or through public files at local government offices, and then send personalised letters to homeowners. Others take a broader approach through advertisements online, on television, or in the paper, posters on telefone poles, median strips and at bus stops, or flyers or business cards at your front door. The con artists use easy and straight-forward messages, such as:

Prevent Being Foreclosed Right Now!

We guarantee to prevent you getting foreclosed on.

Keep your house. We all know your house is booked to be sold. We can do it!

We have special relations within many banks that can hasten your case approval.

We will Save your home. Guaranteed. Free Consultation

We stop foreclosures each day. Our team of executives can stop yours this week!

After they have your attention, they use a range of strategies to get your money:
false support or phantom Help

The scammer tells you that he will barter a contract with your bank to save your place if you pay a charge first. You could be warned not to contact your lender, lawyer, or credit counselor, and to let the sting artist handle all of the details. When you pay the fee, the sting artist takes off with your cash.

occasionally, the con artist insists that you make all home loan payments straight to him while he barters with the bank. In this instance, the con artist may collect 1 or 2 months of payments before disappearing.
Bait-and-Switch

You believe you’re signing documents for a new loan to make your current mortgage current. This is a trick : you’ve signed documents that surrender the title of your house to the swindle artist in return for a rescue loan.
Rent-to-Buy Scheme

You’re told to surrender the title as part of a deal that lets you remain in your home as a renter, and to get it back during the following couple of years. You could be told that surrendering the title will permit a borrower with a better credit rating to secure new financing and prevent the loss of the home. But the details of these deals generally are so tiring that buying back your home becomes most unlikely. You lose the home, and the swindle artist walks off with all of your home’s equity. Worse yet, when the new borrower defaults on the loan, you’re ejected.

In a change, the con artist raises the rent over time to the point the former home-owner can’t afford it . After missing several lease payments, the renter the previous homeowner is evicted, leaving the rescuer free to sell the house.

In a similar equity-skimming situation, the scam artist offers to discover a consumer for your house, but only if you sign over the deed and move out. The scam artist guarantees to pay you a little of the profit when the home sells. When you transfer the deed, the sting artist simply hires out the home and pockets the proceeds while your lender proceeds with the foreclosure. In the final analysis, you lose your place and you’re still responsible for the delinquent mortgage. That’s because transferring the deed does zip to transfer your mortgage requirement.