Beware the Foreclosure Rescue Scam!!

With the recent rise in foreclosures, foreclosure-related scams have exploded onto the real estate scene. These so-called “foreclosure rescue companies” claim they will help save your home, but in reality are out to make a profit -- at your expense.

If you are at risk of or in foreclosure, you should be on the lookout for scams. Here are some red flags to watch out for:

• Asks for money upfront before providing any service
• Instructs you not to contact your lender, lawyer, housing counselor, family, friends or others.
• Asks for mortgage payments to be made directly to his or her company or bank account.
• Requires payment only in the form of cash, cashier's check or wire transfer.
• Promises to stop the foreclosure process, no matter the circumstances
• Advises you to transfer your property deed or title to his or her company
• Offers to fill out paperwork for you
• Asks for something to be done immediately and without delay. This includes pressuring you into signing paperwork that you have not had the chance to read or understand
• Encourages you to lease your house and buy it back over time
• Asks for you to give a power of attorney
• Asks for signatures on a grant deed or deed of trust
• Asks for signatures on a document that has lines left blank
• Fails to provide copies of signed documents
• Refuses or fails to put an oral promise or statement in writing

If you have been a victim of a foreclosure-related scam or approached by a scam artist you may report the incident to the following agencies:

• California Attorney General http://ag.ca.gov
• California Department of Real Estate www.dre.ca.gov
• Department of Housing and Urban Development www.hud.gov
• Federal Trade Commission www.ftc.gov
• Your local Better Business Bureau www.bbb.org

If you are at risk of foreclosure or have already received a foreclosure notice, you should contact your lender immediately.