Surviving Scam Artists Amidst Foreclosures In Michigan

Foreclosures in Michigan and Scams

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Even when you are going through a difficult time such as impending foreclosure, there are still heartless people who want to take advantage of you. They present you with plans and solutions to help you with your foreclosure except they do nothing but give you more problems. If you’re facing foreclosures in Michigan or anywhere, you’re vulnerability may catch you off-guard. Scams aren’t always easy to spot but knowing the warning signs will help you detect them before it’s too late.

Types of schemes that loan scammers employ with people facing foreclosures in Michigan

Paying advance fees

If a person or company asks for advance fees so they could work with your lender to modify, refinance or reinstate your mortgage, this is instantly a red flag. Never give advance fees even if they seem and sound like professionals. HUD-certified foreclosure assistance are mostly free.

Mode of payment

If a person or company insists on only accepting cashier’s check or wire transfer for payments, this signals a red flag. Scammers want to quickly take your money and run and cash, cashier’s checks, or wire transfers give them this opportunity without being easily traced.

Guarantees to stop foreclosure

If a person or company guarantees they can stop a foreclosure or get your loan modified, it’s an indication of a scam. Even legitimate, trustworthy HUD-approved counseling agencies cannot guarantee to stop foreclosure or modify your loan. They will only promise they will try their best to help you but they would not give any guarantees.

Advices to stop paying your mortgage company

Never send your mortgage payment to anyone other than your mortgage lender. Scammers will most likely advise you to stop payments to your mortgage company and pay them instead so they can run away with your money and leave you facing an even bigger problem.

Advices not to contact your lender or lawyer

If a person or company instructs you not to contact your lawyer, lender or counselor, be wary. Only deal directly with your lender who are HUD-certified at all times.

Forcing you to sign any document

Never sign any document that you have not had a chance to read or do not fully understand. A legit housing counselor will never force you to sign documents without reading and understanding it. Never also sign documents with blank lines and spaces as scammers will add information later and put you in trouble.

Offering to complete paperwork on your behalf

Always review and complete all paperwork yourself and never trust anyone to do it for you as scammers may add information that could be impacting your mortgage.

Offering to buy your house

If a person or company makes an offer to buy your house in cash at a price not set by the housing market, be wary. Although the offers may seem tempting, consult your lender or a HUD-certified counselor first before you sell your home.

Lease now and buy later scheme

Scammers may tell you they can ‘rescue’ you by renting them your house and buying it back over time from them. What you do not know is that the terms of this scheme are so demanding that buying back your house is impossible, therefore, you get evicted while the scammer walks off with most or all of the equity.

Asking you to divulge personal financial information

In order to ‘help’ you, scam artists may ask you to give out important financial info. Never release personal financial information online or over the phone. Only give this type of information to companies that you know and trust.

A lot of people may be facing foreclosures in Michigan but this does not give them the excuse to panic and jump on any help being offered. Most often, scam artists pose as legitimate organizations, approved by, or affiliated with the government, hence, it always pays to know and spot these scam artists.

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