Mortgage scams come in various flavors. Victims usually spend years fighting to get their homes back and some never succeed.

Attorney Leah Weaver, who focuses on fighting the scams as an Equal Justice Works Fellow at the Legal Aid Society of Minneapolis, explains how scammers work this fraud:

For example you've got a $200,000 home, with $100,000 of equity in it.  So you sell your home, for $120,000 -- not much more than what's owed on the mortgage. Often, the lease terms desperate homeowners agree to turn out to be as onerous as their previous mortgage payments that helped get them into trouble. Con artists also manipulate victims when facing crucial deadlines.

Beware of any home sale contract where you aren't formally released from liability for your mortgage. Do call your Mortgage Company or lender if you're in trouble. Contrary to popular perception, lenders don't want to steal your house. Lenders always lose money on foreclosures, even in a rising market.

Proceed with caution, if a company or person describes itself as a "mortgage consultant," "foreclosure service," or something similar. Also, if a company or person describes itself who collects a fee before giving any services, advertises to people whose homes are listed for foreclosure, including anyone who sends flyers or solicits door-to-door, and says you should make home mortgage payments directly to them or to their company instead of your mortgage lender.

You need to get full information on the foreclosure process in your state. Minnesota, for example, has the Minnesota Housing Finance Agency as well as the Minnesota Mortgage Foreclosure Prevention Association, which has federal Housing and Urban Development counselors available.

Never should you sign a contract under pressure. Lately, some scam artists promise they'll wipe out or pay off your home's debt for you. Some flustered homeowners’ bite.

By M. Sese
http://realestatepress.org