What is Mortgage Relief Fraud
Mortgage relief fraud occurs when scammers target distressed Albuquerque homeowners seeking Albuquerque foreclosure help. These unscrupulous companies or individuals generally guarantee an Albuquerque short sale agreement or loan modification and charge an upfront fee to start the service. There have been many reports of desperate Albuquerque home owners spending thousands of dollars to get Albuquerque foreclosure help only to find that they had been taken advantage of, lied to, and end up in a worse situation than when they began.
Albuquerque home owners facing the stress of foreclosure do not want to worry about whether or not the assistance they receive is legitimate. Unfortunately, a growing trend of mortgage relief scams has made a challenging situation even more difficult to navigate. The good news is there are those who wish to combat mortgage relief fraud. The Federal Trade Commission and real estate professionals like me are there to provide Albuquerque foreclosure help and advice. This web site will help you to identify fraud and avoid becoming a victim.
Rip-Off Red Flags The following items should serve as a warning that Albuquerque foreclosure help is not legitimate:
1. Upfront Fees
Always avoid any foreclosure help that charges upfront fees. Not only is it illegal, it’s certainly a sign that the Albuquerque foreclosure help is fraudulent. POINT BLANK: Do not pay for the promise of results, pay for the results themselves.
2. Guarantees
Be suspicious of anyone who guarantees Albuquerque foreclosure help. Any legitimate agent or company should know that the Albuquerque foreclosure help is complicated and dependant on many factors, and that to guarantee a successful result is unrealistic. Fraudulent parties will make this promise to falsely raise your hopes, making them appear as though they are providing a rare opportunity. As common sense suggests, if it sounds too good to be true, it usually is.
3. Government Affiliation
Certain fraudulent companies present themselves as government agencies or other authoritative entities by creating websites with official-looking seals, official-sounding names, or video clips of politicians. If someone claims to represent the government, a lending institution or a bank, be sure to verify his or her affiliation. The best way to do this is to check with your lender, Better Business Bureau, or the government’s official Making Home Affordable website.
4. Deed Transfer
Beware of people who pressure you to sign papers immediately, or who try to convince you that they can save your home if you sign or transfer over the deed to your house. Some call this taking over your property subject-to existing financing. But no matter what you are told about why you should sign over the deed, understand that once this is done, you no longer have legal rights to the property and can be removed from it. Always seek legal counsel before proceeding with an option like this.
Common Scams
Along with red flags, there are certain Albuquerque foreclosure help programs that you should be aware of that will alert you to the fact that they may not be legitimate.
1. Phantom Foreclosure Help Counseling
This is the most common form of foreclosure help fraud in the U.S. The Albuquerque home owner pays an upfront fee to secure a guaranteed short sale or loan modification by a company who has little or no intention of providing foreclosure help at all. Because the process can be strung out over several months, distressed Albuquerque home owners have little time to get genuine Albuquerque foreclosure help.
2. Sale Lease Back or Repurchase
This type of fraud involves Albuquerque home owner signing the property deed over to an individual or, most commonly, a land trust, that holds the property on behalf of the home owner (making the consumer liable for taxes and insurance). The land trust rents the property back to Albuquerque home owners with the agreement that they will be able to repurchase the home when able. The terms of these agreements make them almost impossible for the homeowner to regain legal ownership of the property, and also give the right to the land trust to evict, raise rents, or sell the property.
3. Bait and Switch
This scam involves Albuquerque home owners transferring the property to another owner in exchange for foreclosure help. The Albuquerque home owner does not know they are selling or deeding the property and often the documents are misleading or completely fraudulent. Usually the purchase price is a fraction of the home’s worth.
4. Fraudulent Modification
This type of fraud involves a rescue company pretending to negotiate with a lender, but in reality only divert reduced mortgage payments to themselves without the homeowner’s or lender’s knowledge.
5. Bankruptcy Foreclosure
This scheme involves the scam artist taking an upfront fee to negotiate a mortgage modification, then pocketing the fee and filing for bankruptcy on behalf of the Albuquerque home owner without the homeowner’s knowledge. This delays foreclosure, but ruins the homeowner’s credit.
How We Can Help
As an Albuquerque Certified Distressed Property Expert designated agent, I am extensively trained to show you alternatives to foreclosure, including loan modifications and short sales. My services come at no cost to you and my efforts will always be in your best interests. Call me at 505 401-7500 if you are struggling with mortgage payments and need credible, free advice.
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