Preventing Foreclosure Fraud

Avoid Foreclosure — Thu, 22 Mar 2012 19:52:20 +0000

Foreclosure is one of the most devastating life events that you can ever go through. There are few educational resources that teach you how to stop foreclosure. The rise in foreclosures in many states has unfortunately lead to foreclosure fraud. Known scam artists are placing advertisements online and in magazines and newspapers to lure homeowners. The government has released some information for preventing foreclosure fraud from happening but it has not stopped it. Desperate times do not have to call for desperate measures if you know the basics of how to avoid foreclosure fraud.

Words like “Mortgage Relief”, “90% Success Rate” “Modify Your Loan Guaranteed” and “We Know Banks and Lenders” are all words that are often included in a foreclosure fraud scam. Reputable companies offer assistance first without making any type of claim. It costs nothing to get advice that could help you. The FTC has rules in place that specifically state no money can exchange hands unless you get a relief offer from your bank or mortgage lender. While counseling is necessary in foreclosure, some scam artists take money up front and do nothing to help you.

Popular USA Foreclosure Scams

A common scam is to pay overdue mortgage payments directly to a foreclosure help center while work is being performed. This is not only incorrect it is illegal. Qualified counselors do not ask you to pay missed mortgage payments to them in exchange for negotiations. Expert counselors work hard to negotiate with banks and mortgage lenders. They do not participate in illegal activities or any type of mortgage related fraud. A spinoff of a counseling scam is one that involves giving up your title to another qualified borrower. The borrow will try and renegotiate your loan rate. You should never be asked to surrender your title by anyone that is giving your foreclosure help.

Ways of Preventing Foreclosure Fraud

It is not uncommon in foreclosure fraud cases that someone freely and clearly signs over a property without even knowing it. Some scam artists present homeowners with several confusing documents that have time limits attached. Homeowners are instructed to move quickly and sign everything fast. A lawyer is the only person that should tell you how fast to complete a document. You can stop foreclosure by making smart decisions and becoming educated by agencies that help thousands of people. Knowing these facts about what you should and should never do will help you. If you suspect fraud, it should always be reported to the FTC by visiting www.ftc.gov.

Call Avoid Foreclosure at 1-800-589-4106 to get real help and avoid foreclosure fraud.

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Can My Bankruptcy Stop a Foreclosure?

Avoid Foreclosure — Wed, 21 Mar 2012 21:35:15 +0000

If foreclosure help were like advertisements for food or clothing, it would be easy to get help. The sad reality is that banks and lenders do not want to educate you on the ways that you can stop foreclosure. A common question that is asked is can bankruptcy stop foreclosure from happening. Yes, it is possible to avoid foreclosure with bankruptcy.

It is important to understand the process of foreclosure to determine if bankruptcy is the best option. When you get behind on your house payments, your lender immediately takes notice and contacts its legal team to start the process of foreclosure. You are always the last to know when foreclosure has been filed. Depending on the state where you live your lender can expedite foreclosure making it harder to stop.

How Foreclosure Affects Bankruptcy

When foreclosure has started, lenders require the full payment of a mortgage not just what is overdue. This misconception rapidly routes homeowners into the foreclosure whirlwind and homes are sold fast. You must know the phase of foreclosure that you are in before you consider bankruptcy. You have likely done research on bankruptcy and already know how damaging bankruptcy is to your credit. The phase of foreclosure that you are in might not save you even if you file for bankruptcy to stop foreclosure from happening.

The type of bankruptcy that you are considering will affect foreclosure prevention. Chapter 7 has specific rules about the acquisition and sale of your personal property. Chapter 13 can extend payment arrangements to help you repay your debt including past mortgage payments. The timeline to prevent foreclosure with a bankruptcy is very limited. Banks and lenders keep track of every notice that is sent to you. Demands are typically made that include due dates you are required to follow if you want to stop a foreclosure.

How Bankruptcy Can Stop Foreclosure

The sale date of your property is the last notice that you will receive from a mortgage lender or bank during foreclosure. In order to prevent foreclosure, filing bankruptcy before the sale date is arranged and sent to you is key. Once a sale date has been set bankruptcy protection cannot help you. There are other ways to stop foreclosure without bankruptcy. The damage done to your credit during bankruptcy is severe. You will have extreme difficulty getting approval for any loan, apartment lease or credit card for nearly a decade.

Call Avoid Foreclosure at 1-800-589-4106 and get help to stop foreclosure without filing bankruptcy.