Protect Yourself from Fraud by Avoiding Foreclosure Scams.
If a notice of default for foreclosure has been recorded, get all the information you can about when the foreclosure sale might occur immediately so that you know how much time you will have to deal with the problem..
Never sign a deed to another person or company without first consulting an attorney. There are many companies who will try to buy your property while it's in foreclosure for a small amount of money, saying that you will be able to rent a home back from them and buy it at some point in the future. Many of these companies in fact intend to take control of your house and, after curing the foreclosure, have you evicted
Do not make your mortgage payments to someone other than your bank. If you can't make your mortgage payments, immediately contact your lender and try to work something out. The worst thing you can do is to ignore notices from your lender.
Many of the companies that attempt to purchase your home when it's in foreclosure will tell you that they will make arrangements to release you from liability for your mortgage so that you will not owe your lender anything and you will not have a negative mark on your credit report. Make sure that you are getting everything you are being promised by consulting with an attorney before signing anything.
Never sign any documents that have blank spaces or writing in pencil. Make sure that you get a copy of anything you sign at the time that you sign it - do not let anyone have you sign a paper in and tell you that they will "bring your copy back later."
If you are not fluent in English make sure that you use a family member or friend to interpret and translate for you. Never trust what a stranger says about what a contract means or what your rights or responsibilities are unless you clearly understand what is being said.
