If you're facing foreclosure on your Modesto home, you might be intrigued by offers that claim to be able to "save your home quickly" or "stop foreclosure now." You may have seen or even responded to newspaper ads, flyers or Internet ads that promise to get you out of debt fast without filing for bankruptcy or that claim to be able to file your bankruptcy without affecting your credit score. While there are legitimate credit counseling services that offer foreclosure assistance, there are no magic "genie lamp" services that can simply wish away your foreclosure situation.
The Better Business Bureau (BBB) and Department of Justice (DOJ) work together to educate homeowners on bankruptcy foreclosure scams around the country. Both agencies post known scams and warn consumers that scam artists will often target specific religious or ethnic groups with flyers offering homeowners quick fixes to mortgage problems.
The BBB reports that one of the most common scams involves companies telling homeowners that they can deal directly with their lender to stop foreclosure. Then, they ask the homeowners to make mortgage payments directly to their company instead of to the bank. Instead of making the payments for you or talking to your lender, though, they will just take the money and run. More scandalous con artists will even ask for the property deed or title to your home so that they can file bankruptcy in your name without your knowledge. While this will temporarily stop foreclosure, it only allows them enough time to skip town with all your money before you realize what's happened.
Look for Signs
The BBB and DOJ suggest that you proceed with caution when you come across services that:
- Have titles such as "mortgage consultant" or "foreclosure service"
- Contact you only when your home is listed for foreclosure
- Ask for a fee before providing services
- Direct you to make payments directly to them instead of your lender
- Make you sign over your property deed or title
Your best bet is to hire a reputable bankruptcy lawyer in Modesto who can take you through the bankruptcy filing process using the proper legal procedure. If something sounds too good to be true, it probably is.
