Stop My Foreclosure Broomfield: 3 Foreclosure Frauds to Watch Out

The moment you are served with a foreclosure notice, the only thing that comes to your mind is how do I stop my foreclosure Broomfield?

This is, basically, the thought that comes to everyone’s mind once they get the dreaded notice of intent for foreclosure. During such times, one is desperate for a solution that can help them keep their house rather than lose it to foreclosure. It is during such moments that fraudsters come in to take advantage of the affected persons.

Even though the real estate market has significantly recovered, there are still many cases of people trying to fight foreclosure. Due to the unstable economic times, it’s easy to find yourself late on mortgage payments, something that can easily trigger the foreclosure notice from your lender. The process is lengthy, stressful and complicated and with it comes the risk of having to deal with corn artists and scammers who have a variety of fraud plans that target the distressed homeowners trying to answer the question how do I stop my foreclosure Broomfield?

In this line of argument, here is a list of 3 foreclosure frauds that you need to watch out for just in case you find yourself having to deal with a foreclosure notice from your lender.

Do not pay anyone to stop foreclosure

In 1999, a company known as Tax Relief ASAP was taken to court for frauds that saw the company cheat homeowners that they can help stop foreclosure by modifying their mortgages as long as they make an up-front payment that exceeded $5000 in some cases. More than 1400 homeowners fell for this scheme and since the company wasn’t genuine, most of these people lost their houses to foreclosure, with the FTC able to recover an amount that could only pay back about 25% of the affected persons’ losses.

Be wary of those companies that ask for a small amount of money so that they can help you stop foreclosure. You will be surprised to find that these scammers have a network that includes marketers and salespersons that aggressively pitch their ideas to victims in order to push them into their trap. Before dealing with any company that buys houses for cash, make sure you confirm if it’s a registered company.

Inflated foreclosure fees

Many financial institutions do not enjoy foreclosures because of not only how complicated the process is, but also the cost involved. It can cost a company as much as $50,000 to complete the foreclosure process, but it appears that some service providers can hike the foreclosure fees in a way that leaves the homeowner with an even bigger debt.

Before a foreclosure process is initiated, the lender must serve the homeowner with a foreclosure notice informing them of their intention to proceed with the process of retaking the home. Apparently, some legal service providers are hiking the price they charge to simply serve a foreclosure notice to a homeowner. As noted, these charges will eventually reflect on the side of the homeowner, thus piling up even more fees.

Fractional interest transfers

Known to be one of the most insidious foreclosure frauds, fractional interest transfers are defined by the DOJ as a practice that involves a homeowner signing to handover a fraction of their house’s ownership to a company that claims to help stop foreclosure. The company then goes into a series of hiring that end up with a bankruptcy being filed for the homeowner.

With a bankruptcy, the scammer will be able to delay the foreclosure process and while this is great for the homeowner as they have time to find a solution, the fraudulent part of it is that the company demands the homeowner makes monthly payments for their services. This will go on until the bankruptcy ends and the lender comes back for you – which is when most people notice that they’ve been conned.

Avoid foreclosure frauds by selling to Denver Property Flip

When searching for the answer to the question how I can stop my foreclosure Broomfield, you need to be very careful. While you can check out your options with a foreclosure attorney, you may end up having to sell the house in order to stop foreclosure.

When such a time comes, feel free to call Denver Property Flip on (720) 370-9595 and we will make you an all-cash offer to help you stop the foreclosure of your house in just 5 days.