Save the Dream :
Ohio's Foreclosure Prevention Effort
Types of Foreclosure Rescue Scams
Equity skimming: A "buyer" approaches you, offering to get you out of financial
trouble by promising to pay off your mortgage or give you a sum of money when the
property is sold. The "buyer" may suggest that you move out quickly and deed the
property to him or her. The "buyer" then collects rent for a time, does not make
any mortgage payments, and allows the lender to foreclose. Remember, signing over
your deed to someone else does not necessarily relieve you of your obligation on
your loan.
Phantom help: The "rescuer" charges outrageous fees for simple phone calls or
paperwork that you could easily do, none of which results in saving the home. This
predatory scam gives you a false sense of hope and prevents you from seeking qualified
help.
The bailout: In this scam, you are deceived into signing over title with the belief
that you will be able to remain in the house as a renter and eventually buy it back
over time. The terms of these scams are so burdensome that the buy-back becomes
impossible, you lose possession, and the "rescuer" walks off with most or all of
the equity.
The bait-and-switch: In this scam, you think you are signing documents to bring
the mortgage current, but instead you are actually surrender your ownership. You usually
won’t realize that you’ve been scammed until you’re evicted.
Phony counseling agencies: Some groups that claim to be "counseling agencies"
may approach you and offer to perform certain services for a fee. These could be
services you could do for yourself for free, such as negotiating a new payment plan
with your loan servicer, or pursuing a pre-foreclosure sale.