As the Las Vegas foreclosure crisis continues to cause problems, so does the prevalance of foreclosure rescue scams.
These are companies that say they can help you avoid foreclosure. But here are 4 things to know to make sure you don’t get caught up in a foreclosure rescue scam:
1. Don’t listen to them if they tell you to stop paying your mortgage. If you stop paying your mortgage, you can be foreclosed on. The only other ways to stop foreclosure are to sell your home, or to negotiate a “deed in lieu of foreclosure” agreement with your mortgage lender.
2. You don’t need a foreclosure rescue company to negotiate a mortgage modification. You can actually do it yourself. If you’re not comfortable doing that, then work with an experienced and trustworthy bankruptcy attorney. There’s little regulation of foreclosure rescue companies. But there is a great deal of oversight for attorneys.
3. Do NOT pay any upfront fees to a foreclosure rescue company or any other such agency. If they want up front fees it’s most likely a scam. The only time you should pay an up front fee is when you pay a bankruptcy attorney to file your case for you.
4. The only legal (i.e., law-related) solution for dealing with foreclosure is bankruptcy. Don’t believe any foreclosure rescue companies or debt consolidation or credit counseling businesses that claim there are other legal solutions.