Biggest Foreclosure Scams in Memphis
Foreclosure scams in Memphis are a common problem for homeowners with debt. If you’re facing foreclosure or have trouble paying your mortgage, you need to know how these scams work and how to avoid them.
Rescue Scam
One of the most common foreclosure scams is the rescue scam, in which scammers claim that they can save your home from foreclosure for a fee. They may ask for an upfront payment or that you sign over your property to them.
In reality, these scammers have no intention of helping you and will often disappear with your money or your property.
Loan Modification Scams
Another type of foreclosure scam is the loan modification scam. Scammers may claim to be affiliated with your lender or the government and offer to negotiate a loan modification on your behalf. They may charge high fees or ask for personal information, like your social security number or bank account details.
In reality, these scammers are only interested in stealing your money or identity.
Leaseback Schemes
Some scammers may also offer a “leaseback” scheme, in which you sign over your property to the scammer and agree to rent it back from them. They promise that you can buy your property back once you have your finances in order.
However, in reality, the scammer will simply evict you and keep your property.
How to Protect Yourself
To protect yourself from foreclosure scams, it’s important to be aware of the warning signs. Scammers will often pressure you to act quickly or send payment upfront. They’ll often promise to fix your foreclosure problem with little effort on your part. If it sounds too good to be true, it probably is.
Always research any company or individual you’re considering working with, and ask for references. Don’t give them any personal information until you’ve looked them up and verified their services. We recommend checking with the Better Business Bureau for information if you have doubts about the company’s authenticity or trustworthiness.
If you believe you’ve been the victim of a foreclosure scam, report it to the Federal Trade Commission (FTC) and your state’s Attorney General’s Office.
Remember despite all the scams out there, legitimate help is available if you’re behind on your mortgage payments. In fact, there are a couple of things you can do to stop foreclosure:
The Legal (and Safe) Way to Stop Foreclosure in Memphis
If you want to stop a foreclosure in advance, you can try to work out a payment with your bank or lending company. However, be aware these agreements generally aren’t considered legally binding. I’ve been a foreclosure lawyer in Memphis for decades, and I’ve seen banks go back on their word and foreclose on homes even after agreeing not to.
The legal process to stop a foreclosure is Chapter 13 bankruptcy.
With Chapter 13, you can save your home and other assets, and it’s all backed by the courts: the banks have to comply, and you don’t have to worry about a scam.
Our Memphis Chapter 13 attorneys help you stop foreclosure and come out stronger on the other side than before. We give you resources for success and communicate with you every step of the way. You can enjoy peace of mind as you leave you debt behind you and start fresh with your home intact.
To get started, we offer a free consultation. We’ll answer your questions and help you figure out all your options.
Stop foreclosure for good, the safe way.
Call us today at 901-327-2100, or fill out the form on this page.