Illinois Bankruptcy Lawyers Warn About Foreclosure Rescue Scams
I don't need to tell you that getting a foreclosure notice in the mail is a stressful event. But for some folks, it's such a shock that it blinds them to common sense. In their state of desperation, they can fall victim to foreclosure rescue scams.
As foreclosure rates skyrocket (check out the latest numbers), so do instances of frauds. So-called foreclosure rescue specialists promise to save your home by a number of different methods. Sometimes they ask for fees or mortgage payments up front - and then disappear after a few months, with your money. Or they'll ask you to sign documents for a new loan that will supposedly make your existing mortgage current - but you're actually signing documents that surrender the title of your home. In another method, they might directly ask you to surrender your title so they can buy your home and let you rent it, with the guarantee that you'll be able to buy it back in a few years. But, conveniently, the terms of the deal are so complicated that regaining your house is just about impossible.
Up front payments or requests that you first give up your home are always red flags. But another dead giveaway is the claim that your home can be "rescued." Truthfully, the only way to stop foreclosure is to bring your loan current, and bankruptcy is often the most sensible way to do it.
With bankruptcy, you've got the law on your side. As soon as you file, you trigger an automatic stay- a court order that stops all actions by creditors, including foreclosures. When you file for Chapter 13, this stay remains in effect as long as you make payments under your affordable repayment plan. Who would you rather have protecting your home: a possible scam artist with no finance background or the federal government?
Unfortunately, many people avoid bankruptcy because they're intimidated by the complex process. But at DebtStoppers, our professional bankruptcy attorneys specialize in making sure you succeed. Got questions? We'll answer them for free. Need help determining whether bankruptcy is your best bet? Sign up for our free one-on-one debt analysis or visit us at a free community workshop in Chicago or Atlanta. Why take a gamble on stopping foreclosure? Bankruptcy is always a sure bet.