Better Business Bureau Issues Foreclosure Scam Alert
The vultures have begun to circle the increasing number of U.S. homeowners facing foreclosure. The Better Business Bureau has received complaints of foreclosure scams from every state and is warning consumers to be on the alert.
The current foreclosure crisis has been deemed one of the worst in U.S. history. A record number of people have already lost their homes, and more are expected to follow as interest rates reset and home prices continue to fall.
Homeowners are especially vulnerable right now, which means the opportunities are ripe for con artists who claim to offer foreclosure rescue services.
In recent months, the Better Business Bureau has received complaints from consumers in every state who claim to be a victim of a foreclosure rescue company. Many of the complaints are coming from states like Georgia, Ohio, and Colorado, where foreclosure rates are exceptionally high.
Homeowner reports vary, but generally start out the same. A foreclosure rescue company contacts the homeowner (or vice versa) and promises to stop the foreclosure action for a fee. Homeowners are usually told not to worry and not to contact their lender. Most assume everything will be okay...until they lose their house.
'A lot of these companies say, 'We will save your house or your money back.' Unfortunately, many complaints indicate that these are just words,' said Alison Preszler, a spokesperson for the BBB. 'If you're lucky you'll perhaps get part of what you paid them back, but chances are you won't get any money back AND you've lost your home.'
With new foreclosure rescue companies cropping up across the U.S. everyday, it is becoming increasingly difficult for homeowners to determine who is legit and who is not.
'The best advice I can offer for people whose homes are entering into foreclosure is to get in touch with your lender and STAY IN TOUCH. Your lender wants to keep you in your house and can work to renegotiate the terms of the loans,' says Preszler. 'Many mortgage foreclosure rescue companies convince you to stop talking to your lender and say that you can quit your worrying because they'll will work everything out for you.'
Preszler adds that there are companies that are reliable and offer foreclosure assistance, but homeowners need to research and check the company out with the BBB first to make sure they're on the up and up.
-Staff
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