Homeowner Rescue Scams

Posted September 3rd, 2010
by HomeownersInsurance.org Staff (no comments)

You won’t catch us saying “trust the government” very often, but when it comes to dealing with issues concerning your home ownership, you might want to at least check with the government concerning anyone who claims they are going to help you. With the exception of your mortgage company, your homeowners insurance company, and your immediate relatives, most of the organizations who offer you unsolicited help will only help relieve your bank account of what little you have left.

Let’s face it, we were all hit by the housing bubble. Our home values dropped, many of us were stuck with increased payments due to adjustable rate mortgages cranking the interest rates sky high, and some have even lost their homes to foreclosure. Unfortunately, the best homeowners insurance in the world doesn’t protect us from any of those things.

If you’re behind on your mortgage payments and in danger of facing foreclosure, your bank or lending institution has to file claims with your local courts. Unfortunately, these are public records which can be viewed by anyone. They are often published in the local newspaper, so any scam artist or con man can easily tell whom they can target.

Many of the scams being run offer help protecting you from foreclosure in return for a one time fee, typically $1,000 or more. The reason why the fee is one time, of course, is that the con artist will be long gone with the cash from every sucker who gave him money long before he would’ve been able to collect a second fee anyway.

So, who can you trust? Believe it or not, for this one, it’s the government and your lender.

Your first course of action if you are in danger of losing your home should be to contact your lender. They are thoroughly versed with all of the latest government programs which are designed to help you stay in your home. And in today’s market, they are more than happy to try to do whatever it takes to help keep you in your home. They would much rather get you back on track with your mortgage than be stuck with a foreclosure that will be sold for half of what you owe on it due to plummeting home values.

If you think you may have already been scammed, contact your local authorities immediately. They represent your best chances of being able to recover your money and bring con artists to justice.

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