Foreclosure Scams Claim Another Victim

Distressed homeowners facing the possibility of foreclosure are being targeted by unscrupulous individuals and companies under the guise of offering foreclosure help. Another couple in California has actually fallen victim to a foreclosure scam that involved paying a small fee in exchange for stopping foreclosure.

The said foreclosure company contacted the couple via a letter and promised the couple a way to stop foreclosure. Out of desperation, the Californian couple decided to accept the offer and paid the foreclosure rescue company $1800. This fee is supposed to pay for the mediation services that the company will provide. The couple was lead to believe that a short sale negotiation with the lender was in the works.

Of course after paying the fee, the couple was unable to contact the foreclosure rescue company and the short sale arrangement never materialized. For them, being taken advantage of by these individuals is worse than losing the $1800. They could not believe that there are actually people who try to profit from unfortunate situations.

Foreclosure scams have actually been on the rise in the past year ever since the mortgage mess erupted. One of the reasons why many distressed homeowners have fallen victims to these scams is that they believed that their mortgage problems can be remedied that easily. Other are simply too ignorant of their rights and the foreclosure process to make an informed decision.

It is very important for troubled borrowers to know that working out a deal with their lender is the first option they should explore if they really want to avoid foreclosure. Negotiating repayment terms does not really require the involvement of a third party as long as you are honest and straightforward with your financial capability. You should try to prepare for the meeting with your lender by sorting out your financial documents and working out a realistic budget.

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