Foreclosure rescue schemes prey on homeowners who are falling behind on payments or worried about losing their homes to foreclosure. Watch out for:
- Scammers claiming to work directly with your mortgage service to modify your loan. They may charge high fees for preparing documents and disappear without doing anything.
- Criminals who convince homeowners to transfer ownership of their homes with a promise that the home can be repurchased after the loan is fixed. In this nightmare scenario, the homeowner still carries the mortgage debt but no longer owns the home.
Short-sale fraud can negatively affect home buyers, sellers and/or lenders. A short sale is when a home is sold for less than the homeowner owes on the mortgage. This type of sale is becoming increasingly common since many homeowners are underwater on their mortgages, and it can be a good deal when executed fairly. Short sale fraud happens when unscrupulous real estate agents, title companies or other middlemen manipulate these deals to make a bigger profit.
Illegitimate payoffs may sabotage a homeowner's mortgage refinance. This happens when a title or closing agent pockets the payoffs that were supposed to go to the previous mortgage company. There's lag time in recording the necessary documents, so this crime may go undiscovered for a month or two.
We Can Help
At PeoplesBank, we offer many affordable mortgages and refinance options that can save you money, plus excellent service you can trust. Contact a mortgage specialist or visit our website to learn more.