Are you troubled by an impending foreclosure on your home? If yes, watch out for scam operators who are especially taking advantage of those who are facing home foreclosures. The US Department of Justice has issued a warning against companies or individuals who refers to themselves as "foreclosure service", “foreclosure consultant” and other similar names.

These companies learn about your situation from foreclosure listings so it’s really easy for them to pick on who to ensnare. The stress and anxiety that you are experiencing can make you vulnerable and accept any help that is offered your way. These people may try to convince you with promises to better your situation and to prevent you from getting a record of foreclosure in your credit.

Watch out! These scammers are out to make a fool out of you. Awareness is your best protection. Here are some of the foreclosure tactics scammers can use against you.

Foreclosure will not be reflected on your credit history. They may ask you to sign over the house to their name in order to avoid a record of foreclosure. Don’t believe anyone who promises to protect your credit report from a foreclosure record. Even if you sign over you home to another person, it will not release you from your debts or save your credit report from foreclosure.

Let us take care of your default. Some scammers would offer to give you an upfront payment and then promise to pay off the rest of your unpaid mortgage but you have to sign over your home to them. Most scammers use this tactic to get the homeowners out of the house, and have other people lease the property. The rent they get out of the property goes directly in their pockets. No payment is ever submitted to your mortgage lender so the time ticks until foreclosure is completed. Although some buyers may make an offer to pay off your default if you give them a lower price on your home, this is a very risky deal.

You Can Buy Back Your Home from Us. This can be a tempting offer especially if you’re really attached to your property. However, keep in mind that for you to be able buy back the property, you will need to apply for new loan. A new loan means a higher loan than your present one and with an even higher interest. Be realistic. Do you really think you can buy back your property considering your present financial situation?

Refinance your loan with us. Although refinancing is indeed an option to avoid foreclosure, it is crucial that you choose the company you’ll be refinancing your loan with. Most companies would offer a loan with a very loan interest but the moment you sign up, the rates will dramatically increase. If you do want to refinance your loan, why not make an arrangement with your present mortgage lender? Better yet, you can apply for a Loan Modification which is just like refinancing but only without the need for reapplication.

About the Author
Liz Roberts is a loan consultant with NewHorizon Finance and has been providing consumers and business owners with financing since 1989. Join our mailing list for FREE tips on building and repairing your credit . We also have a list of recommended bad credit credit cards Copyright 2007