The so called foreclosure rescue firms use a variety of ways to find homeowners in distress: through public foreclosure notices in newspapers, the internet or public court files, and then send letters and postcards to homeowners or will come knocking at your door. Others advertise through ads on the Internet, television, newspaper, posters on telephone poles, etc.
PLEASE Do Not Fall For Companies That Offer False Promises!
Once these companies have your attention, they use a variety of tactics to get your money:
Phony Counseling Or Phantom Help
The scam artist tells you that he can negotiate a deal with your lender to save your house if you pay a fee first. You may be told not to contact your lender, lawyer or credit counselor, and to let the scam artist handle all the details. Once you pay the fee, the scam artist takes off with your money.
Sometimes, the scam artist insists that you make all mortgage payments directly to him while he negotiates with the lender. In this instance, the scammer may collect a few months of payments before disappearing.
You think you're signing documents for a new loan to make your existing mortgage current. This is a trick: you've signed documents that surrender the title of your house to the scam artist in exchange for a "rescue" loan.
You're told to surrender the title as part of a deal that allows you to remain in your home as a renter, and to buy it back during the next few years. You may be told that surrendering the title will permit a borrower with a better credit rating to secure new financing — and prevent the loss of the home. But the terms of these deals usually are so burdensome that buying back your home becomes impossible. You lose the home, and the scam artist walks off with all or most of your home's equity. Worse yet, when the new borrower defaults on the loan, you're evicted.
In a variation, the scam artist raises the rent over time to the point that the former homeowner can't afford it. After missing several rent payments, the renter — the former homeowner — is evicted, leaving the "rescuer" free to sell the house.
In a similar equity-skimming situation, the scam artist offers to find a buyer for your home, but only if you sign over the deed and move out. The scam artist promises to pay you a portion of the profit when the home sells. Once you transfer the deed, the scam artist simply rents out the home and pockets the proceeds while your lender proceeds with the foreclosure. In the end, you lose your home — and you're still responsible for the unpaid mortgage. That's because transferring the deed does nothing to transfer your mortgage obligation.
Fraudulent foreclosure "rescue" professionals use half-truths and outright lies to sell services that promise relief and then fail to deliver. Illinois foreclosure attorneys can help with these situations.
Get Informed. Understand Your Options
At Lynch Law Offices, P.C., in Lisle, Illinois, we believe in providing our clients with options. When you meet with one of our attorneys, they will offer an honest assessment of your situation and review your options with you. The attorney will discuss the benefits and challenges associated with each option so you can make an informed decision about what is right for you.
For some of our clients, a Chapter 13 bankruptcy will be the best option. Chapter 13 bankruptcy is the only option that protects clients from foreclosure while providing them with a payment plan to get caught up on past-due payments.
Your initial consultation is free. We offer debt relief services to clients in Wheaton, Naperville and throughout DuPage County. To schedule an appointment, please call our firm at 800-491-7493 or complete our online contact form.
We are a debt relief agency. We proudly help people file for bankruptcy relief under the Bankruptcy Code.