The Federal Reserve Board - 5 Tips for Avoiding Foreclosure Scams

Many people who have fallen behind on their mortgage payments are being targeted for so-called foreclosure “rescue” or “prevention “scams.

Be wary of solicitations that offer to assist you in stopping or preventing foreclosure.  Be aware of companies or individuals that promise to help you save your home from foreclosure, they might be stealing your home or most of the equity you have accumulated.

Common types of Foreclosure Rescue Scams you should be aware are:

• Foreclosure Prevention Specialist - Phony foreclosure counselors.

• Phantom Help - High fees for work the homeowners could do themselves.

• Lease/Buy Back – Homeowners are deceived into signing over the deed to their home.

• False Bailout – The Homeowner are led to believe that they can rent their home from the new owners and eventually repurchase the home.

• Bait and Switch - The Homeowners think they are signing new mortgage documents, but they are actually signing over the deed to their home.