Going through a foreclosure can be a terrifying and stressful time for homeowners. Unfortunately, there are people who try to take advantage of this vulnerable position through foreclosure scams.
Not all mortgage foreclosure fraud schemes look the same. Some might ask you to pay a large sum of money, and others could lead to you losing your home. Consulting an experienced foreclosure attorney can help you differentiate legitimate options to prevent foreclosure from foreclosure fraud.
In our experience helping New Jersey homeowners deal with the foreclosure process, we do not recommend using non-attorney foreclosure services. New Jersey has a unique foreclosure system, unlike many other states where all foreclosures must go through the court system. If you are working with a non-attorney, they are unlikely to be able to serve you to the same extent as an experienced New Jersey foreclosure attorney.
If you’re going through a foreclosure, working with an attorney can help ensure that you’ve explored all of your available options. Contact Denebaux & Denbeaux Law to learn more about how we may be able to help you through the foreclosure process.
What Is Foreclosure Rescue Fraud?
If you’re going through a foreclosure or at risk of being foreclosed on, you may receive notices advertising “secret methods” to fix mortgage delinquency. These are fraudulent schemes that claim they’re going to help rescue you from foreclosure. Typically they will claim that they can speed up or slow down the foreclosure process and ask for a large, up-front payment to do so.
Foreclosure rescue fraud schemes could also ask you to sign over the title of your home. They may promise to pay off your delinquency and let you repurchase your home once your financial situation improves. This is never a good choice. Once you’ve signed over the title, you are no longer the owner of your home, and you lose your rights to be in the home. Also, the company will not have to hold up to their word that they will let you stay in the home or repurchase it at any point in the future.
Consulting with an attorney throughout the foreclosure process can help you identify and avoid fraud. Before agreeing to any plan that claims it will fix your foreclosure, seeking legal advice can be a good idea.
Your mortgage company has to notify you of your delinquency on your mortgage. Until you’ve received this notice, even though you may be at risk of foreclosure, the foreclosure process hasn’t begun. Within the notice of intent to foreclose, your mortgage company should include instructions on how to bring your mortgage current.
The foreclosure process in every state is different. Depending on what state you’re in, you will have a varying amount of time to remedy your situation. If you are unable to bring your mortgage current in that amount of time, your lender can move forward with the foreclosure.
Mortgage Fraud Protection
The easiest way to protect yourself from mortgage fraud is to educate yourself on the foreclosure process as much as possible. Knowing even a little bit about the foreclosure process can help you understand what to expect and make you better able to identify fraud.
When it comes to your home, it’s important always to be suspicious. You should be sure to do your own research and review all of your contracts carefully so you know what you’re obligated to do. Your lender may seem like a friendly ally, but it’s important that you’re also suspicious of them. Banks aren’t on your side, they are on the side of getting the money they are owed, and if that means taking your home, they won’t necessarily be helpful or trustworthy.
One of the most reliable mortgage fraud prevention tactics is to consult with an attorney. Experienced foreclosure attorneys have more knowledge of foreclosure proceedings and foreclosure fraud tactics than the average person and can help advise you on the best course of action for your specific situation.
Work With a Foreclosure Attorney You Can Trust
Going through foreclosure and struggling to keep your home can be stressful and overwhelming. In order to protect your home, it’s important that you only work with reputable and trustworthy people.
There may be people who try to take advantage of your situation and vulnerability. An attorney can help advise you on your best options in the foreclosure process and help keep you away from foreclosure fraud.
Joshua Denbeaux is a New Jersey foreclosure attorney who has worked with thousands of homeowners to help them protect their homes. If you are facing foreclosure and in need of legal assistance, contact Denbeux & Denbeaux Law today to discuss your situation.