5 of the Most Common Foreclosure Scams Binghamton Bankruptcy Lawyers Fight

Binghamton bankruptcy lawyer fights foreclosure scamsUnless you make your mortgage payments each month as scheduled, you are at risk of foreclosure. Being in this situation is extremely confusing and scary, and, unfortunately, there are people who do nothing but prey on individuals just like you. As Binghamton bankruptcy lawyers, we see it all the time.

Fortunately, you have a number of good solutions.

By knowing what to look for, you have the opportunity to avoid becoming a victim of a foreclosure scam.

Scamming Opportunities

  1. Lender Scams – For this, a lender convinces you to refinance with an interest-only loan. At first, you feel financial relief, but once the massive balloon payment comes due, you realize there is no way to pay it. Ultimately, the lender takes the home through foreclosure.
  2. Equity Stripping – This involves a mortgage lender aware of your financial struggles encouraging you to pay off the original loan with a new but higher loan. Initially, this gets you out of a dire situation, but before long, making the more expensive monthly payments becomes too much of a burden. In the process, most or all of your home equity is stripped. Without your equity to bail you out, the lender forecloses on the home.
  3. Fake Loan Transactions – Phony loans consist of refinancing your home and, as part of this, the lender requires the signing of documentation. Because the documents are complex, you fail to see that by signing, you just turned the title of the property over to the lender for a small amount of money. For this reason, if you are ever asked to sign any documents for a home loan, have a Binghamton attorney review them first.
  4. Equity Skimming – Sadly, many people get caught up in this type of scam that involves you signing your home over to a new buyer in exchange for him or her making the payments. The buyer then rents the home out, collecting payments on your behalf. However, instead of making the mortgage payments, this person pockets the money. Obviously, the loan quickly falls behind, leading to the very foreclosure that you were trying to prevent.
  5. Loan Flipping – A lender may recommend refinancing your home loan as a way of getting current but also having extra money on hand to purchase a new car, take a vacation, pay off medical bills, and so on. The problem is that refinance loans involve significant fees and other related costs. In fact, the amount you ultimately pay to refinance is usually much greater than the amount you have for paying bills, taking a vacation, and so on. As a result, you find yourself right back in the same situation of facing foreclosure.

Take Control

Instead of worrying about foreclosure, you want to meet with a reputable Binghamton bankruptcy lawyer. Our attorneys will look at your financial situation and offer appropriate solutions for getting out of debt. The bankruptcy attorney in Binghamton may suggest bankruptcy as a means of avoiding foreclosure. Because this is a major decision, we will discuss this and all other options for you to consider. To determine how we can help you best, please contact us today.

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