Financial issues are stressful enough without having to worry about being cheated or taken advantage of during such a vulnerable time. Unfortunately, there are several "foreclosure rescue" scams that claim to get your home out of foreclosure but end up saddling you with skyrocketing costs and impossible-to-meet obligations. Bankruptcy, namely Chapter 13, is a much more feasible and economical way to try to save your home. Below are a few facts about how foreclosure scams work and how you can avoid them.
A Foreclosure Scam Is Not a Refinancing or a New Loan
Despite what these scammers might tell you, their plans are not a loan refinancing, and they aren't a new loan altogether. The fine print on your contract will reveal the truth; or, at least, it should. In most cases, what you are actually doing is transferring your ownership to the scammer, so you are losing your equity in your home and giving it to a fraudulent company.
If You're Told You Can Buy Back Your Home Later, Don't Believe It
Before a home in foreclosure has been transferred to the scammers, they may assure you that it's perfectly alright, that you can buy your home back from them once you're on more solid financial footing. Don't believe it for a second. While they may indeed extend that offer, the asking price and the terms of the sale will be outrageous; the price and the terms are designed to prevent you from repurchasing, so the scammers can keep your home.
There Are Options Besides Foreclosure Rescues
Just because you are in financial distress does not mean you are desperate or without options. There are much safer, easier ways to try to hang onto your home. Perhaps the most effective is filing for Chapter 13 bankruptcy; your filing puts an automatic stay on the foreclosure, and you include any late mortgage payments in your Chapter 13 repayment plan. Your bankruptcy lawyer will help you explore this option in more depth.
If you live in the Stuttgart, AR, area, trust an attorney at Bueker Law Firm to look out for your interests and protect your rights throughout the bankruptcy process. They offer bankruptcy representation for both Chapter 7 and Chapter 13 cases. Call (870) 673-1313, visit the firm's website, or follow them on Facebook to arrange a free consultation today.