Saving Your Home From Foreclosure - Part II
It amazes me how criminals and con artists will prey on people when they are at their most vulnerable. It is like kicking your dog. But then, why should that surprise me?
Once a lender wins their lawsuit to foreclose on your home, it becomes a matter of public record. This is information the con artist is waiting for to target you as his next victim. Their ploy is to prey upon your panic and desperation. They come in as a trusted advisor that will solve all your problems. In exchange, you must agree to deal only with them - not your lender, not your attorney or anyone else - just them. This should be your first red flag!
Their scam is to get you to sign a bunch of documents and keep you in the dark about what you are signing. They tell you that they are documents authorizing them to negotiate on your behalf with the lender so there is no need for you to talk further with the lender or your attorney. They tell you that there is no need for anyone else to see the documents - especially your lawyer! - because, after all, we’re all friends here, right? You will not receive a copy of anything you signed - so later on, you will have no record of what has happened.
What you have just done is signed the deed to your property over to them - in effect, you have just given them your house. Then they tell you that they will deal with your lender - that there is no further need for you to do so. You are instructed to send all of your payments directly to them, not to your lender. They take the deed to your property, sell the property or re-finance it, run with the money and are gone. Worse, you no longer own your home - which means that you no longer have the ability to work out a settlement with the lender - and you are out whatever money you have given them.
To avoid being the victim of a con:
*Never sign anything that your attorney hasn’t first reviewed.
*Never let any of your orginal documents - your deed, your mortgage documents, etc, leave your possession.
*Never send your mortgage payment to anyone other than your lender. If there is a change as to where you should send your payment, you will receive written notice of that from your lender.
*Beware of anyone that discourages you from talking to your attorney or your lender directly.
*Beware of anyone that charges you some sort of a “good faith deposit” to help you resolve your problems. There are legitimate governmental agencies that will counsel you for free. A legitimate investor looking to purchase your home does not need or want any money up front from you. In fact, a legitimate investor will give YOU the good faith deposit, not the other way around!
If you suspect that you have been the victim of a con, call the police and report it immediately. To get free counseling and immediate advice, call 888-995-HOPE. Also, this link to the Illinois Association of REALTORS contains several resources that will educate you further:
http://www.yourillinoishome.com/financing/preventmortgagefraud.htm
And, of course, if I can be of any assistance, I am always privileged to serve however I am able.
“All Things With Exuberance!”
mary!
