How to avoid foreclosure rescue scams in New York

On Behalf of | Jul 21, 2021 | Fraud

If you’re facing foreclosure on your home or another property in New York, then you might be desperately looking for solutions. This is where scammers tend to thrive since people in a vulnerable position might not see the red flags before it’s too late.

How do foreclosure rescue scams work?

If your home is up for foreclosure, your lender will file what’s known as a lis pendens with your local county clerk’s office. This means that your address gets published alongside all other recorded foreclosures in your county.

Scammers can obtain your address and reach out to you by mail, telephone, email or even visiting in person. The scammer will likely make big promises of stopping your foreclosure and saving your home in order to get you to work with them without suspecting mortgage fraud. Once the scammer has your interest, they’ll offer a variety of ways to save your home, often by getting ownership of your home. They’ll then let you live there as a renter or offer a similar solution, such as:

– Paying your mortgage in exchange for temporarily holding the deed
– Asking you to transfer the deed into their name
– Offering a low-cost loan
– Offering to negotiate on your behalf

What happens after the scammer has the deed?

Once you’ve agreed to any of these options, the scammer will then legally own your home. They might run away with the deed to your home and evict you in the process. Some scammers will let you stay there but then charge hidden fees that keep you in debt.

If you believe you’re a victim of one of these foreclosure scams, reach out to a lawyer today. A legal professional may help you understand your rights.