Unfortunately there are people out there that want to profit from your financial misfortune. If you are facing foreclosure you are vulnerable to these scam artists. In fact, you are their primary target.

How do they find you? It's easy. Once your lender files your foreclosure notice with the public trustee the public must be notified, usually by a listing in your local or community newspaper. When this occurs you will likely be bombarded with mail, phone calls, and even personal visits by people claiming to be able to help you. These crooks watch the foreclosure listings like sharks circling their prey.

These predators will arrive at your doorstep at the most opportune time posing as caring allies who can 'creatively' solve your problems. In effect they are only interested in stealing your hard earned equity or even your home itself.

You can usually spot these scam artists by their bogus titles such as 'foreclosure specialist' or 'foreclosure consultant'. These titles are red flags. They will act like your friend, give you false hope, and tell you everything you want to hear. Be very skeptical of anyone claiming that they can help you. Tell them upfront you will be looking into their qualifications, background, and business standing. That should send the worst of them away. For those remaining, you'll need to know the three primary techniques they will employ to try to rip you off.

The first and most commonly used technique is called Equity Skimming. In this scam a person claiming to be a buyer will approach you. They will promise to get you out of your foreclosure dilemma by paying off your mortgage and giving you a sum of money when the property is sold. The "buyer" will probably suggest that you deed the property to them, move out, and discontinue communication with your mortgage lender.

Typically the scam will play out by the buyer renting out your home to a third party and collecting rental payments for a few months. During this time they will not make any of your mortgage payments and will allow your lender to foreclose on the property. Signing over your deed to someone else does not relieve you of your obligation on the loan.

If you are reluctant to sell your home to them they may offer to 'lease it' back to you if you agree to deed the property to them. On the surface this option may seem appealing since you can remain in your home - but don't be fooled. This almost always leads to disaster.

Usually these crooks will promise to sell your property back to you on a future date after the threat of foreclosure subsides. Arrangements like these usually end up benefiting only the person or company approaching you. Do not risk it. Once you sign over the deed to your home you lose control of it. They will have the ability to borrow against your home or even sell it without your permission.

The second scam technique involves a phony loan transaction. You are presented with documents that appear to be a refinance loan that will bring your delinquent loan current. But in reality the documents may be cleverly worded to transfer title of your home to their company for only a fraction of its value. Or if the loan doesn't transfer title to them it still may have undisclosed, hidden traps in the terms that can spell disaster for you. Common traps such as outrageous fees, interest-only payments, immediate rate adjustments, balloons, and prepayment penalties.

You have to know exactly what you are agreeing to. Once you sign the documents, even if the terms were not explained correctly, you will be responsible for those terms upon the funding of the loan. Always have an attorney review any such transaction in advance before signing anything. If you are pressured in any way to enter into an agreement regarding your home you can safely assume that you are being victimized.

The third most common technique used to separate you from your money is the bogus 'expert'. Here you are approached by someone offering to help you solve your foreclosure problems for a fee. Usually the help entails simple tasks that you can do yourself for free - such as negotiating a payment plan with your lender. The worst of these individuals will simply take your money and walk away without helping at all. Never agree to pay anyone up front for their foreclosure services.

In summary here are the basic rules to follow:

• Never agree to deed your property to anyone


• Assume the person approaching you is more interested in the money they can make than they are with solving your problem


• Never pay any money upfront to people claiming to be experts or specialists


• Never sign any document you don't fully understand


• Do not allow yourself to be intimidated by pressure or threats from any third party


• Make sure you get all "promises" and offers in writing


• Any agreements or offers should be reviewed by an attorney before you sign anything


• Always remember that verbal agreements mean nothing


• Beware of any contract of sale or loan assumption where you are not formally released from liability for your mortgage debt


• Check with your lender before entering into any agreements affecting your property


• Never agree to pursue a new loan with monthly payments you know you will have trouble making


• Never sign any document that has blank lines or spaces to be filled in later


• If you don't speak English use your own translator. Don't rely on anyone else's translator


• If you are selling the home yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state's Attorney General, the State Real Estate Commission, or your local District Attorney's Consumer Fraud Unit for this type of information


• Be especially aware of 'affinity marketing' techniques offering you help. For example Christians helping fellow Christians, Hispanics helping Hispanics, etc. There has been an increase in scam artists looking to exploit people that share a common interest, belief, or social group. Their goal is to gain your trust through a common thread and get you to let your guard down

One last note regarding foreclosure scams. People looking to rip you off don't necessarily have to be strangers. Make sure any offers from friends or family meet the same criteria and are in your best interest.

For more information that can help you survive your foreclosure be sure to visit Bill's Free resource website to assist homeowners in foreclosure located here: Stop Foreclosure

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