Foreclosure Looming - Beware of Scams
September 26, 2007
It seems that the slowdown in the housing market coupled with that variety of exotic loans that were created to assist buyers in a purchase has resulted in a scenario of crisis. Houses that were financed with 100% financing are often worth less than the existing loan. Homeowners whose payments have risen find that they no longer are to make the payments. People finding themselves in these situations often react in panic. They become prey for the unscrupulous.
Some of the scams are: 1) We'll save your credit. Pay us a fee and sign the house over to us. The foreclosure will be recorded against us not you. Wrong. You are the borrower.
2)We'll give you some money. Just sign the house over to us and we will cure the default. This would not be a problem IF you know how much equity you are selling and IF the purchaser really will cure the default and IF the purchaser will make the payments and IF you still want to be responsible for the loan. Too many IFS. Be careful!
3) We'll buy the property, lease it to you, you have the option to buy it back. The reality is you will not be able to get the new loan and if you could the chances are you would have higher payments and when the lease is up, the now owner can make you move out.
These are just a few of the proposal the homeowner might get. Far better to seek other solutions, the first of which is to find a trustworthy advisor. You will need to know what your options may be. There are several legitimate routes that you could follow but it is important to educate yourself as to what options are possible for your particular situation.
If you read this blog and have a personal situational question, click on comment and send me the question. No comments are published until I have read them and determined whether they will be of interest to the broader public. You can also e mail me at shirleyh@loislauer.com.
It seems that the slowdown in the housing market coupled with that variety of exotic loans that were created to assist buyers in a purchase has resulted in a scenario of crisis. Houses that were financed with 100% financing are often worth less than the existing loan. Homeowners whose payments have risen find that they no longer are to make the payments. People finding themselves in these situations often react in panic. They become prey for the unscrupulous.
Some of the scams are: 1) We'll save your credit. Pay us a fee and sign the house over to us. The foreclosure will be recorded against us not you. Wrong. You are the borrower.
2)We'll give you some money. Just sign the house over to us and we will cure the default. This would not be a problem IF you know how much equity you are selling and IF the purchaser really will cure the default and IF the purchaser will make the payments and IF you still want to be responsible for the loan. Too many IFS. Be careful!
3) We'll buy the property, lease it to you, you have the option to buy it back. The reality is you will not be able to get the new loan and if you could the chances are you would have higher payments and when the lease is up, the now owner can make you move out.
These are just a few of the proposal the homeowner might get. Far better to seek other solutions, the first of which is to find a trustworthy advisor. You will need to know what your options may be. There are several legitimate routes that you could follow but it is important to educate yourself as to what options are possible for your particular situation.
If you read this blog and have a personal situational question, click on comment and send me the question. No comments are published until I have read them and determined whether they will be of interest to the broader public. You can also e mail me at shirleyh@loislauer.com.
posted by shirley harry at 8:44 AM
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