Even if you have received a foreclosure notice, you should not panic and reach for the first offer of foreclosure assistance. You need to learn how to recognize the tricks which foreclosure assistance crooks use to swindle those in your situation.

The Equity Skimming Scam

The stress of being in financial difficulty can very easily cloud you judgment, and this is especially true if you are confronted with the looming loss of your home. One of the scams perpetrated by fake foreclosure assistance companies is Equity Skimming.

In the Equity Skimming scam, an unsolicited offer is made to find a buyer for your home so that you can clear up your debt s, and the individual making it requires you to sign your home over so that you will no longer be facing foreclosure, with a promise that you will be paid some of the profit when they sell the home.

But once you have transferred title to your home, the scammer will simply rent it out for a while, pocketing the rent while the bank proceeds with foreclosure. You have lost your home, and will remain liable for the unpaid mortgage, because transferring the deed did nothing to transfer your mortgage obligation. You are out not only whatever you paid the scammers, but your home as well.

Fake Counseling Services

Then there are the fake foreclosure assistance counseling services. They tell you that for a minimal fee you will be able to have their experts negotiate with your mortgage holders to get the foreclosure assistance you need They promise to relive you of the burden of having to deal with your mortgagor on your own, saying that their expertise in such matters will enable then to get you the best possible deal.

But more often than not, the only methods of foreclosure assistance they are capable of offering are those you could practice on your own, at no cost. The best they can do, if they even do that much, is get you a short-term grace period of lower monthly payments while you look for alternative sources of money to pay off your mortgage default. For more info see http://www.myfinancialbliss.com/foreclosure/foreclosure-assistance-18 on foreclosure assistance.

Do not accept any offers of foreclosure assistance which are not spelled out in writing. And do not agree to any agreement without first having it reviewed by an attorney familiar with foreclosure. Finally, if you suspect you have been targeted by a foreclosure assistance scam, contact the Consumer Fraud Unit of your District Attorney’s office without delay.

Post from: Obama's ForeClosure Plan Website

Learning To Spot The Foreclosure Assistance Scams

The foreclosure spiral

Most lenders have mortgage loan time frames. From the day the mortgage payments are due, you still get to have 16 days until you are reminded of your delinquency. Afterwards, expect your lender to be in frequent contact with you for delayed payment. Also, an extra fee for late payment is appended to your balance. After the 30th day mark and you still have not been able to pay your monthlies or any balance due, a foreclosure demand or breach letter will be sent. You will be given more or less 30 days to still pay your debt. Afterwards, a foreclosure case is filed unto the local court and legal proceedings will determine the consequence of the foreclosure.

How to deal with the foreclosure spiral

The best way to deal with the foreclosure spiral is to prioritize your debt and pay back as soon as possible. However, when this becomes impossible, the only other option is to avoid or stop it. In avoiding foreclosures, make sure to contact your lender right away. After all, unless you’re a scammer, your lender will provide any foreclosure assistance whenever appropriate. What you need to do is to disclose any information or reason/s why you were not able to meet the deadline. From hereon, the lender will provide foreclosure solutions which you may opt for. One way is to modify your mortgage status. However, if you are deeply entrenched in the foreclosure spiral, more often than not, the lender might just cut its losses rather than lose more in tax payments. Either that or they may recommend a mortgage short sale.

When mortgage payments become impossible for the borrower or when any mortgage status modifications become useless or have already been exhausted, a mortgage short sale can be arranged. You may be wondering what a short sale is. Lenders will sometimes allow this as a sort of last option for both sides to cut back on losses. During a so-called redemption period, the lender allows the borrower to either buy back the property or sell the property for a price that is less than the loan amount, within a limited period. The latter is involved with short sale foreclosures or real estate short sale. The period may last for a month or extend to 90 days. The short sale process is quite simple in essence but is often harder to execute. The borrower simply needs to find a buyer who is willing to buy in such a short span of time.

This is where Cashout Options comes in. CashOut Options is a company that is very experienced and is known to be good at stopping foreclosures. They are a company that buys almost any kind of property whether it be two-storey houses, apartments, bungalows, in whatever state of condition and in any location within the country. They have provided many people with foreclosure help by mediating in these sorts of instances. Because they immediately buy your property directly from you, they could help in mortgage short sales in order for you to get out of the foreclosure spiral and from being evicted from your own home. What is more is that, depending on the circumstance and agreement/s that may transpire between you and the company, they could answer for the remaining balance of your loan. Thus, when keeping ownership of your home does not become an issue, you not only escape the legalities and embarrassing consequences of a foreclosure but also maintain your credit as a borrower and possibly keep your home as tenants.

Post from: Obama's ForeClosure Plan Website

Escaping the Foreclosure Spiral