Foreclosure Crisis Worsened by Fraud

In Maryland, residents of a small community can not help but discuss the current foreclosure crisis being experienced, both nationally and locally. And along with the news of the worsening problem in the mortgage industry is the increasing incidence of foreclosure fraud.

Many of the local homeowners, who have been lead to believe by their mortgage servicers that hybrid loans are the best kinds of loans, are now facing the possibility of losing their homes to foreclosure. Some of them have already lost the battle.

To make matters worse, these distressed homeowners are also becoming the targets of foreclosure rescue scams, perpetrated by individuals or companies who see their plight as an opportunity to earn extra money.

Out of desperation and insufficient knowledge about the foreclosure process, many troubled borrowers follow the advices given by these unscrupulous individuals, oftentimes involving the payment of a certain amount as upfront fees in exchange for foreclosure assistance. Of course, once the payment has been made, the person or company disappears.

Other foreclosure scams are worse than this. Some struggling homeowners will be convinced to sign over the ownership of their home to a foreclosure rescue company, believing that this is necessary in order to receive mortgage relief and avoid foreclosure. Sadly, the property will be stripped of whatever equity is left. The scam artists will then leave and let the original homeowner deal with the foreclosure by himself.

Such foreclosure frauds are becoming abundant in Maryland and local officials are getting alarmed with the considerable increase in reports. They are advising distressed homeowners to be wary of these foreclosure rescue operations unless they are really sure that they are dealing with a legitimate company. It is also vital to remember that signing over your home?s title is not necessary and should only be done during a sales transaction.

Related Posts:

• Fake Foreclosure Rescue Operations Rising
• Foreclosure Rescue Scams: How to Spot Them
• Foreclosure Scam Artist Sentenced to 10 Years
• Maryland Sees Huge Increase in First Quarter Foreclosures
• Avoid Foreclosure by Reducing House Maintenance Costs