Florida Foreclosure Lawyers

Avoiding Scams

With the housing market in the situation that it is currently in and the number of foreclosures throughout Florida, dishonest individuals and businesses are trying to take advantage of unsuspecting homeowners. It is important to be aware of foreclosure scams and what you can do to avoid them.

When facing foreclosure, deals that seem too good to be true or just too easy are not to be trusted. Working with a well-reputed and ethical foreclosure defense lawyer is one way that you can ensure your interests are protected and that you do not fall prey to a foreclosure scam.

Following are some examples of potential Florida foreclosure scams:

• Signing over your deed: a “lender” may contact you and offer to help you refinance so you can avoid foreclosure. The lender will say that the only way they can help is if you first sign over the deed to your property. Once you sign over the deed, they will then treat the property as though it were their own, borrowing against it, selling it or even evicting you if you do not pay the rent (aka your mortgage payments).
• Balloon payment: you may be offered a way out of foreclosure by refinancing with another lender. When you refinance, you are not aware that you will actually face a balloon payment at the end of the loan term. This will mean that you will owe the entire principal balance of the loan. If you cannot pay it or refinance, you may then face foreclosure and possibly lose your home.
• Equity skimming: a potential buyer may contact you and offer you a way out of foreclosure. In this foreclosure scam, the buyer may offer to pay off your mortgage and rent your home back to you, possibly also offering you a lump sum of money when the property sells. The buyer may say that you need to deed the property to his or her name and move out in order to get the process started. The buyer may then collect rent for a time and will not pay the mortgage payment, resulting in the loan going into default and the home to foreclose.

Foreclosure Defense Attorneys in Florida

When a borrower is facing foreclosure, he or she may be willing to try anything to save their home. Don’t allow yourself to become the victim of a foreclosure scam – you could lose everything. Instead, consult and work with a skilled foreclosure defense attorney who can actually protect your rights and help you reach the conclusion you are hoping for in regards to your home.

Contact a Florida foreclosure attorney at Carman Law Firm, PA to learn more about how to avoid foreclosure scams.