Ten Precautions to avoid Foreclosure Scammers

• Don't panic! Get full information on the foreclosure process for your state and especially how much time you have to resolve your problems short of losing your home. Make sure you understand all deadlines for responding to court documents, documents from lenders and other important papers. Be especially sure that you know the point at which you can lose the legal right to own your home.
• Don't sign any papers you don't fully understand.
• Make sure you get all "promises" in writing.
• Beware of any loan assumption where you are not formally released from liability for your mortgage debt and contracts of sale.
• Check with a lawyer before entering into any deal involving your home.
• Never sign a contract under pressure. Take your time to review the paperwork thoroughly, preferably with a lawyer representing your interests only.
• Don't sign away ownership of your property (often referred to as a "qui claim deed") to anyone without advice from your lawyer. Be especially suspicious of offers to take over ownership of your home as part of a deal that will allow you to lease it then buy it back after two or three years time; Experience shows that the buy-back is often extremely expensive or otherwise out of reach, so in reality you either never get your home back or, if you do,you pay an outrageous amount to recover it.
• Don't make your mortgage payments to someone other than your lender even if he/she promises to pass them on to the mortgage company. And if you find you cannot pay your mortgage do not ignore warning letters from your bank or mortgage lender. Call your lender or a lawyer for help.
• Never make a verbal agreement. Get all promises in writing and get full copies.
• Don't sign anything with blank lines or spaces. Information can be added later that you did not agree to. Never sign a document where the last page only contains your signature line. A con artist can substitute anything in place of the pages you thought you agree to.