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Better Business Bureau ®
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Central Virginia

Educational Consumer Tips

Foreclosure Rescue

Author: Better Business Bureau
Published:

THIS REPORT HAS BEEN OBTAINED FROM SOURCES DEEMED TO BE RELIABLE. IT IS NOT TO BE USED FOR SALES OR PROMOTIONAL PURPOSES.

House Saver Promotions

The Better Business Bureau routinely advises consumers considering using a company which claims to be able to save their house from foreclosure to
investigate the company and the offer prior to signing anything.

Foreclosure is a serious legal matter. If you receive documents concerning a foreclosure lawsuit, it means the party who filed the lawsuit is asking the court to sell your property to the highest bidder to pay off the debt.
If you get letters, phone calls, or personal visits from people offering to help save your home, think carefully before you sign contracts, pay fees or sign a deed to an unknown individual or company. Once foreclosure has been filed, only a lawyer can advise you legally on your options. You can also contact your mortgage holder and ask about payment options and "loan workouts".
Prior to making any payment for foreclosure rescue
services, make sure you read and understand all contracts and documentations involved with the services.

You can obtain a NO CHARGE housing counseling which is provided by the U. S. Department of Housing and Urban Development. Call 1-800-569-4287 to get the location of a housing counseling agency
in your area.

Frequently homeowners who face losing their home are tempted by offers of quick cash for their house. The BBB offers the following tips if you are considering such an offer:

* Talk to your lender. Ask about how to restructure your loan payment of refinance. Some foreclosure rescuers will offer to negotiate with your lender or lawyer. Know that this offer is likely to involve a significant fee.

* If that proves to be unfeasible, try selling the house on your own to pay off the lender. Signing over a deed in no way releases you from your mortgage responsibilities.

* Be careful if someone offers to complete paperwork for you and then asks you to sign a stack of papers. Be certain you are not signing a quit-claim deed to your home.

* Be cautious of anyone who tells you not to contact your mortgage company or your attorney. They are the very people you should be in touch with when dealing with complicated financial matters involving your home.

* Never sign a contract under pressure and never sign away ownership of your property. Ask a trusted family member, your attorney or a financial professional not involved in the transaction to review any paperwork you are asked to sign.

* Before signing any deals with a potential buyer, contact your BBB for a report on the company. Meet the person at his office. Ask to see a list of references, both customers and financial references.