Anyone facing foreclosure should beware of Home Foreclosure Scams. Unfortunately when economic times start getting tough, there is always an eliminate in our society which comes out to take advantage of the situation. Knowing that most people are not necessarily at their peak when facing a challenge such as home foreclosure these individuals will prey on the upset homeowners who may be less informed about their options and are just looking for a solution to maybe save their credit and walk away with at least some money.

Homeowners facing foreclosure should be aware of unscrupulous lenders and scammers. Don’t get me wrong, most lenders and agencies are reputable and legit. However some lenders, commonly second mortgage issuers will use unethical practices that increase the risk of nonpayment by the borrower. These tactics may include lending a large amount in hopes that the borrower will not be able to keep up with the payments, charging outrageous interest, points or fees. They may also repeatedly refinance the loan without any real beneficial reason to the borrower. Homeowners facing foreclosure are often targets of these scammers because they are seeking any solution possible at the time.

One of the most common tricks is an “equity skim”. What is equity skimming? This is when a buyer approaches you and offers to get you out of foreclosure by paying off the mortgage or offering money when the property is sold. They will often suggest you move out quickly and sign the deed over to them. They will then collect rent from the property and fail to make payments on the mortgage. The lender will continue the foreclosure process and foreclose. Signing over the deed does not mean you are no longer obligated to make mortgage payments.

Another common trick scammer’s use is to set up a “counseling” agency. They may contact you offering to do certain services for a given fee. Often times these are things you can do yourself for free. It is important to note that most services are legitimate and will provide lots of great help.

So what do you do if you suspect you are being duped? The most important thing is don’t sign any documents unless you fully understand what you are signing. If the party you are dealing with makes any sort of promises make sure they are in writing. If you arrange a contract of sale loan assumption make sure you know weather or not you are released from liability of the debt. Consult with your attorney before agreeing to any deal that involves your home. Should you decide to sell your home to stop foreclosure, have a look at any possible complaints pertaining to the prospective buyer.

If you are behind on mortgage payments the most important thing to do is learn what options you have and act now. And please believe me, you do have many options even if the mortgage lender has already started formal foreclosure proceedings. Read The Foreclosure Survival Handbook and learn many options which you can use to stop foreclosure on your home.