As you search for a foreclosure specialist, you must keep in mind that not all foreclosure specialists who advertise on the Internet or through the Yellow Pages are honest. There are many articles lately in the daily newspapers of various cities around the country that talk about scam artists, opportunists, and just plain dishonest folk who want your money and don’t deliver the goods.
As San Diego’s nonprofit Legal Aid Society documents, over 50 fraud cases are pending, and with limited resources, the group has become quite overwhelmed by distressed homeowners.
The Better Business Bureau can give you a “heads up” on unscrupulous advisers profiting from the bad fortune of homeowners who are facing foreclosure but don’t deliver a service in return. Not every foreclosure specialist will do the necessary work to save your property. A family might lose their home because they failed to properly check out the foreclosure specialist’s credentials.
In San Diego, there are currently many cases are going forward, but the fraudulent actions of some dishonest foreclosure consultants are not always easy to prosecute.
These advisors:
• Actively seek out distressed homeowners;
• Charge a large fee upfront and then don’t negotiate loans;
• Promise they can save your house without studying your situation properly.
• Sometimes will actually go to the extent of asking you to sign over the deed to their homes to them, giving you false hope that you might regain ownership of your house after a period of renting from them (often at a high price!) while you lose the house anyway.
There are so-called foreclosure consultants who actually knock on the doors of people who have defaulted on their mortgages. How did they learn about these people who are facing the loss of their homes? It’s in the public record. Notices of default are public documents and available in the county recorder’s office. The fraudulent foreclosure specialists find them to be easy prey.
An honest foreclosure specialist will not ask for a very large upfront fee; he’ll gather pertinent information before he decides if you can be helped; and if he tries and fails to help you avoid foreclosure, you won’t be out any money. A good foreclosure specialist won’t make promises he can’t keep; he will honestly assess your risks and not give you false hope.
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