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Avoid Mortgage Scams

Posted by  on Apr 16, 2009
 
Mortgages can be burdensome. But luckily, there are many good debt management and legitimate ways to avoid foreclosure and other credit problems related to home loans. Banks, mortgage companies, and other licensed lenders have plenty of programs specifically designed to help consumers manage their finances or explore ways to find flexibility in their payment plans.

Sometimes, refinancing to a different interest rate or payment schedule will work. Other homeowners find answers by selling their property, leasing it, or borrowing against their home equity. Many consumers take out debt consolidation loans in order to pay off their high-interest balances with a more manageable type of loan. There are also lenders who specialize in so-called "bad debt mortgages," providing money to people with bad credit histories or other financial obstacles in their path. The best option it to compare rates from up to four lenders for the best rates
There are many homeowners in the United States. There are also many opportunities for mortgage scams. The first line of defensive debt management for homeowners facing mortgage trouble is to avoid illegal scams that target innocent borrowers.

Mortgage scams may be sophisticated and professional-looking presentations; don’t be fooled. Glossy brochures, fancy web sites, and well-dressed, knowledgeable sales people are not always a sure sign of reliability. Programs to pay off your entire mortgage may sound good but they could promise much more than they deliver. Likewise, special loans that convert bad debts into positive cash flow may be too good to be true.

Almost all mortgage scams involve a cash payment and signing of legal documents. Once you are trapped, it is difficult to escape. A scam mortgage broker may also tell you to avoid speaking with your lender. This is always faulty advice. Many perpetrators vanish with your assets, leaving you in worse shape than before they arrived on the scene.

These cons are pros. If anyone approaches you with a debt consolidation or bad credit mortgage plan, immediately call your mortgage company or loan officer. If the people are legitimate, your own lender can work with them to expedite the process of paying off debts.

Remember, if the offer is too good to be true, chances are it's not true. Notify your lender, who can alert the police and protect you-and your neighbors-from a devastating experience. The Federal Bureau of Investigation is currently searching for a young couple who has bilked homeowners out of millions of dollars in mortgage scams around the U.S. So long as there are potential victims there will be scam artists. Be diligent and thorough in your mortgage business. The more knowledgeable and involved you are as a consumer, the less likely someone will take advantage of you.

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