Receiving a foreclosure notice may immediately send you into a tailspin. The questions of what will come next and how to save your home may leave you feeling hopeless and scared. However, make sure that your notice is legitimate and not some kind of foreclosure scam.
Scammers may use foreclosure to cause you to panic and then weasel their way into getting money from you. Your vigilance in verifying the validity of your notice may enable you to move forward with the confidence that you fully understand your situation.
Knowing the tricks
Scammers do their best to remain undetected and often use various communication strategies to achieve this objective. According to usa.gov, one method they may use is to approach you as a third party. They may claim their responsibility is to function as a liaison between you and your lender. They may suggest their purpose is to assist you in negotiating a better financing deal with your lender. They may offer to conduct a forensic mortgage loan audit to assist you in evading foreclosure or offer to help you with bankruptcy proceedings so you can keep your home.
Never sign documents unless you have verified their legitimacy with your lender. Scammers may ask you to sign bogus legal paperwork, mortgage documents or foreclosure agreements. They may also request classified personal information including your social security number and bank account information.
Notifying your lender
Your lender has all of the information regarding your mortgage, your payments and whether or not you are at risk of foreclosure. When in doubt, reach out to them and request to discuss your situation.