Advice from Top Los Angeles REALTOR in Avoiding Foreclosure Rescue Scams

Michael Gentile, a foreclosure specialist in Los Angeles, gives valuable advice on how not to fall victim to foreclosure rescue scammers.

Desperate homeowners seeking help are easy prey for scam artists. The Better Business Bureau includes foreclosure rescue scams as one of its top 10 scams. The U.S. Federal Trade Commission reported that 71 companies advertising suspicious foreclosure rescue solutions.

Image via WikipediaOne type of scam involves a shady foreclosure rescue company that will fool you into writing the mortgage payment and an upfront fee ($500 to $5,000) to them. They will instruct you not to contact a lawyer or anyone aside from them. As soon as you made any payment, the scam artist will quickly disappear.

Different Type of Rip-Offs

Bankruptcy Foreclosure Scam - scammer will give you false assurance to stop foreclosure. Pocketing your upfront fee payment, the scammer will file bankruptcy in your name and flee without a trace. You are fooled into believing that everything is working due to temporary proceedings cancellation brought by the bankruptcy filing. You are left with an empty wallet and a marred credit report.

Bait-and-Switch Scam - The scammer will take ownership of your home. You are fooled into signing over the deed of your house, thinking that it is for a new loan. The result is you still have mortgage payments but your house is no longer in your name.

Rent-to-Own Scheme - You are tricked into signing over the deed of your house for a supposedly refinancing move. The scammer either does not allow you to repurchase your house or evict you by raising the rent more than you can afford.

According to Los Angeles REALTOR Richards investigate or avoid shady foreclosure rescue companies that:

1. Gives assurance of stopping a foreclosure.

2. Requires high upfront fees.

3. Demands you to write your mortgage payment checks to somebody that is not your lender.

4. Pressures you to sign document for deed transfer.

How to Get Legitimate Foreclosure Help?

Get in touch with your lender and ask to be referred to the Loss Mitigation Department. Your lender may provide a special forbearance, temporary reduced monthly payment, or payment suspension.

Principle forbearance includes lowering your mortgage amount to decrease monthly payments. Mortgage modification that is federally facilitated can also lower payments. The last resort is short sale process, wherein you can pay off your debt by agreeing to sell your house for less than the existing mortgage.

Related articles

• North Hollywood Realtor's Advice on How to Deal with a Landlord's Foreclosure (northhollywoodrealtor.com)
• 1. Los Angeles REALTOR's Advice: Adding a Garage is a Great Investment (thelaspecialist.com)
• How to Spot and Avoid Foreclosure Scams (movingmalibu.com)
• Pasadena Foreclosures On The Rise - Avoiding Scams is Key (yourpasadenarealtor.com)