If you're faced with the possibility of a foreclosure, the last thing you want to worry about is fraud derailing the process. How much do you know about foreclosure fraud and how to avoid it? Take this quiz to find out!
Foreclosure is expensive and time consuming for lenders as well as homeowners, so most are willing to work with you to make the mortgage whole after one or two missed payments.
While word-of-mouth can point you toward a good attorney, friends may not know your exact needs. State and local bar associations are the best resources for finding out if an attorney practices law in an ethical manner.
When in doubt about a service provider, look for a paper trail. Legitimate providers should readily provide contracts, terms of service and documentation to prove they're aboveboard. Hesitation here should be a warning flag that you're at risk for fraud.
Foreclosure scams are complex; likewise, the criminals behind them come in all shapes and sizes. Always take steps to verify a business's credentials before working with it to resolve a foreclosure.
If a foreclosure service provider is legitimate, it's likely it has enough business without aggressively seeking out new clients. Find out how the business got your name, and be wary that it may be offering a scam.
Mortgages are bought, sold and exchanged among financial institutions. If you're facing foreclosure, it's important to find out who holds the right to foreclose on your mortgage. This may be a job for a qualified attorney.
The success of a foreclosure resolution ultimately depends on your ability to work out a payment plan with your lender. A guarantee from a mortgage rescue operation should be seen as a warning flag of a possible scam.
While it may seem obvious, the best way to avoid fraud -- and a lot of stress and financial drain -- is to do everything you can to avoid ever entering foreclosure.