Foreclosure Scams

by KYW's Amy Feldman

You know the real estate market has fallen hard when Michael Jackson’s famed Neverland Ranch goes on the auction block. If a gazillionaire like Michael Jackson can face foreclosure, many, many out there are finding that they are in danger of losing their homes.  But you need to know that not everyone who purports to help those in need of getting out from under foreclosures is really there to help—there are schemes out there preying on those desperate to save their homes.

Many who offer so called ‘help’ often want homeowners to sign documents that look like refinancing loans but actually transfer the ownership to the ‘lender’. If you are asked to sign a warranty deed, a quitclaim deed, a contract or agreement for deed, or an assignment of a deed or leasehold you should consult an attorney—signing those documents could cause you to be stripped of your equity and your home. If you can’t afford a lawyer, contact your local legal aid society to help you determine if you are getting actual refinancing help or are being victimized.  You should never bury your head in the sand and ignore foreclosure notices; neither should you sign documents that you don’t understand.