The term, foreclosure, has officially become a household name.
Whether you or someone you know has lost their home to foreclosure, there is no doubt that it is a living nightmare.
Just when you thought that you lost everything, you receive phone calls from someone who claims they can help you with your unfortunate outcome.
These programs that are offered to you are what you would call "foreclosure cons.
" There are many types of scams that these con artists are trying to use against you to get money that you just don't have.
Let's go through a couple of these scams, just in case you encounter a couple.
One of the most popular type of scam out there, counseling agencies.
These types of scams try to convince you to that they can negotiate a payment plan with your lender or even try and market your house for sale while it's in preforeclosure.
Basically, they try and get you to pay them for stuff that you can do.
Another foreclosure scam that is on the prowl are lender scams.
These companies claim that they can save you from foreclosure by refinancing your loan.
They will lower your mortgage payments but not like you think.
You will really be paying a lower payment but it's the loan's interest.
By the end of the term, you will be hit with the total amount you borrowed.
So you would either lose your home now or you would later.
The last foreclosure scam I will mention are loan flippers.
This is kind of related to what I mentioned above about lenders refinancing your loan.
Instead of refinancing your loan and paying the interest up front you will be hit with fees and points associated with refinancing.
The selling points are very attractive.
Some include money back offers and very low interest rates.
Obviously, they won't mention to you how they make there money, but they sure do.