Don't Be a Victim of Scam Mortgage Lenders

Some people get so anxious and frustrated with the fact that they may lose their homes that they often become victims to scam mortgage lenders promising to help "save" their homes by providing refinance loans. The truth is that many of these scam mortgage lenders leave homeowners "high and dry" taking possession of their homes right underneath the homeowners nose. The scam mortgage lenders pressure the homeowner or acts as if they need to hurry along the loan process in order to save the home. The homeowner believes hurrying up the process will help them beat any foreclosures on the home. Not only are those homeowners who face foreclosure susceptible to this scam but so are the elderly and those with significant equity in their homes.

The scam mortgage lenders make an offer to help the homeowner refinance their homes to help pay for whatever expense the homeowner is facing, in the case of the elderly, it could be medical expenses or vacations they want to take. Instead of getting the homeowner refinanced, the scam lender disguises the paperwork so that they are actually taking over the property making it seem as if they are providing a loan. To find foreclosures, the scam lenders search print newspapers and journals that showcase foreclosures and pending foreclosures. It is not difficult to find out this information, especially if you are a lender, a scrupulous or a legitimate one. The scam mortgage lender contacts the homeowner, who is interested in finding anyway possible to stop the foreclosure, with promising letters and calls that they can save the house by paying off the loan or offering a refinance loan.

Once they have convinced the homeowner that they can help them stop the foreclosure the scam mortgage lenders get the unsuspecting homeowner to sign documents by rushing the owner through the loan process or by concealing important documents among a large amount of paperwork, basically overwhelming the homeowner causing them to not go over every document with a fine tooth comb. They have build up trust in the homeowner by making "pie in the sky" promises. With these hidden documents the scam lender signs or forges the documents and the homeowner doesn't suspect anything because they never see the documents. Then the scam lender buys a fraction of the home's value from the homeowner. Sometimes the homeowner hands over the title in exchange for a rent-to-own type of agreement. Next, the scam mortgage lender charges outrageous processing fees for a loan that is never processed or carried out, all the while the scam lender is collecting money from so-called processing fees from a bogus loan.

To prevent becoming a victim of scam mortgage lenders, first ask your lender to allow you more time or to make easier payment terms. If you have no other option but to refinance, make sure you contact your state agencies they will provide access to legitimate mortgage lenders. Local offices of Habitat for humanity, ACORN, and local legal aid offices can offer counseling on how to prevent foreclosures.