What is a foreclosure rescue scam?

A foreclosure rescue scam is a fraudulent scheme in which someone takes advantage of homeowners facing foreclosure, typically by promising to help them save their home and obtain a loan modification. In Texas, homeowners facing foreclosure can be targeted by individuals posing as real estate agents, lawyers, or other housing counselors. These scammers will typically ask for an upfront fee for their services, often promising to make payments on the homeowner’s behalf or obtain a loan modification that will lower the monthly payments. In reality, the scammer often does not provide any type of assistance and instead takes the homeowner’s money while doing nothing to help the situation. Additionally, the scammer may provide false documents that appear to be from a legitimate financial institution, but in reality are fake and simply used to take the homeowner’s money. The scammer may also ask the homeowner to transfer the deed to the property to the scammer in exchange for assistance, which leaves the homeowner with little recourse if the services are not provided. The best way to avoid foreclosure rescue scams is to be informed and to be wary of any offers that seem too good to be true. It is important to remember that there are many legitimate organizations in Texas that provide foreclosure assistance and require no upfront fees. Furthermore, if you are contacted by an individual or group offering housing assistance, it is best to research them before making any decisions.

Related FAQs

What is a redemption period?
Can I still get a loan after a foreclosure?
What is judicial foreclosure?
What are the legal consequences of a foreclosure?
What is a foreclosure mediation program?
Can I be evicted after a foreclosure?
What happens if I don't make my mortgage payments?
Can a foreclosure sale be reversed?
What is a cash for keys program?
What is an auction sale?

What is a foreclosure rescue scam?

Related FAQs

Related Blog Posts