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?
Companies 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.