Home Repossession Fraud, Have You Fallen Victim?

There have, and unfortunately always will be, people in this world who want to take advantage of others. Life is already hard enough for everyone. When someone comes along with the intent of only trying to pull a fast one over on you, hard times suddenly become that much more challenging.

There are a few different ways that individuals or companies will go about trying to pull a scam involving home repossession. They will attach themselves to homeowners who are struggling to make their mortgage payments on time, or who may be trying to quickly sell their property.

How Do Home Repo Scams Work?

Repossed Homes and Foreclosure FraudCompanies who operate like this will work to find their victims by advertising online, targeting specific ethnic or cultural groups, and by dispersing fliers. They will likely make promises that they can help, for a fee, of course, to keep your home out of repossession while rarely being able to deliver on the empty promises that they are making.

There are different ways that these unscrupulous companies will try and “help.” They will offer to negotiate with your lender on your behalf or claim that they can help you file for bankruptcy. Some will even ask you to sign over the deed to your home to them while allowing you to live there and just make smaller rental payments until you can get back on your feet. These companies might sound like they could offer you the help that you are so desperately searching for, but you must be careful!

They have been known in the past to ask their clients to make payments to them instead of their mortgage lender or make promises that they can perform a mortgage loan audit to keep you from having your home repossessed. They will make claims that they are affiliated with a government program and claim that they can act as an intermediary between yourself and your mortgage lender. A legitimate government program would not charge fees or make you pay for their help.

What Do You Do if You find Yourself Deceived by Repossession Fraud?

However you came to find yourself in danger of facing a home repossession, you do not need the added stress of dealing with a crook. If you find yourself falling into a scam like this, you should immediately file a complaint against the company or business with the Federal Trade Commission (also known as the FTC). If they are trying to run a scam that involves a bankruptcy, then you should also contact a local U.S. Trustee office. No one wants to be the victim of a scam, but you could help someone else avoid the same pitfalls by reporting it.

There is help out there available to people who look for it when it comes to home repossession. Finding yourself in the situation where you could face home repossession is probably not something that you would think might happen to you. Instead of falling into the pitfalls of a company who is out to take someone for a ride, look into the legitimate options that are available to you. It can be a lengthy process but could save your home.

Home Repossession. What You Can Do to Protect Your Property.

What is home repossession?

The first question you might be asking yourself is what home repossession is. To put it in simple terms, when someone gets a mortgage, they are placing their home as collateral against the loan itself. If the borrower does not make good on the payments toward their loan, then they will have their property taken away from them. This means that when you default on your payments, they will take your home away from you. This is something that unfortunately many people have faced in the past, and are currently facing now.

What Are the Different Types of Repossession?

Home Repossession and Auctioning HousesThere are two different types of home repossession; judicial and non-judicial. The main difference between the two kinds is that one is overseen by the court system (judicial) while the other is not (non-judicial). In both cases, you would be notified, evicted, and the house would be sold at a public auction to the highest bidder.

The length of time that it takes for a home repossession to occur varies from state to state. One factor that goes into play is whether or not the mortgage lender and the homeowner are currently in any negotiations to try and stop the repossession of the home.

Do The Laws Change For Different States?

Depending on the state that you live in, there are different laws that govern how homes are purchased. If you reside in a state that issues a lien-of-trust when you buy your home, then they are able to pursue a non-judicial type of home repossession against you. This can be a lot easier to handle since you won’t have to get the courts involved. This process is sometimes called a “trustee sale”. If you live in a state that requires lenders to issue a mortgage, then they are not able to circumvent this process and must get the courts involved when they are trying to repossess your home.

Before any action can be taken, first a notice of default must be issued. Issuing a notice of default is usually done after the fourth missed payment on your loan. From there the process timeline depends on the laws of the state that you live in. Usually, you will be given 2 to 3 months to get caught up on your loans and stop the home repossession process if possible.

Home Repo Lender With House For Sale

What Can You Do to Prevent A Home Repo?

There are steps that you can take with your lender to try and get things settled before your property is repossessed. There is the option of a short-sale, which is when the house is sold, and the lender agrees to list the debt as “paid in full.” This is not a guaranteed option as the house must be listed for at least two months and the lender must sign off on the sale. If they don’t the homeowner could request a deed-in-lieu, and the house would be voluntarily given back to the lender to prevent a repossession.

All in all, no one wants their property to be repossessed. Depending on the state you live in this can hold true to being a lengthy process. It is always a stressful situation to deal with and can leave you feeling hopeless and lost as to what your future holds. Be aware of the simple mistakes new homeowners make.