Homeowner Beware!
As if the state of our economy and the rising number of foreclosures is not enough, homeowners now need to be aware of scam artists looking for new ways to cheat you. Here are the 5 most common scams homeowners are facing:
- The Obama Rescue Plan Scam
Some rescue companies are charging distressed home owners thousands of dollars to modify their mortgage under the new Obama housing relief plan. There is no need to pay for this help. You can find out all that you need to know, and if you are eligible at MakingHomeAffordable.gov or by calling 888-995-HOPE. - Bait and Switch Scam
Con artists pose as legitimate housing counselors ready to help you refinance. They present you with what appears to be an application for re-financing. What it ends up to be is a transfer of title, and you lose your home. - Rent-to-Buy Scheme
You are approached by someone stating that they know you are having difficulties making your mortgage payment. They offer to help you out by purchasing the home from you, and allowing you to rent it from them. They tell you that once your finances are in order, you can buy it back from them. Once they purchase the home from you, your equity is gone. The lease terms they give you are less than fair, and you are quickly evicted. - The Middleman Scam
A self-proclaimed rescuer promises to negotiate with your bank, on your behalf. They ask for the fee up front; some even charge thousands of dollars. They tell you that you don’t need to contact your lender, lawyer or credit counselor. You make your payments to this middleman while he negotiates with your lender, eventually he disappears with your money. - The Bankruptcy Scam
A con-artist promises to negotiate with your lender, or work out re-financing on your behalf - again there is an up front fee. They never contact your lender, instead they file for your bankruptcy and pocket the money. You don’t know anything until the expensive bankruptcy goes through and ruins your credit for the next 10 years.
Remember - if it sounds to good to be true, it probably is! The Kuchta’s - Kelly & Colleen 262-894-6512 or ckuchta@shorewest.com
Posted by:
Colleen Kuchta
