Foreclosure Rescue, Equity Stripping, Equity skimming, these can all be examples of predatory real estate practices.

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Foreclosure Rescue, Equity Stripping, Equity skimming, these can all be examples of predatory real estate practices. These practices are usually directed at naive, low income borrowers here in the United States facing foreclosure. Foreclosure Rescue can also refer to any sub-prime lending activities. Sub-prime loans can also be aimed at uneducated home owners often ending in a foreclosure and the scams that follow. By no means is everyone involved in the foreclosure rescue a con artist, but enough of them exist that caution MUST be exercised.

Apply now for a Loan Modification Free Consultation with Legal Loan Bailout. We will perform a Forensic Loan Audit to determine if you were a victim of predatory lending. We can help!

Follow below for some valuable information regarding foreclosure and what can be done to prevent it.

WHAT HAPPENS DURING HOMEOWNER FORECLOSURE

When a homeowner can't keep up with his payments and falls behind he (his home) enters foreclosure. When this happens notices appear in newspapers and are reported by distribution services to both investors and rescue (con) artists. This is when the borrower not only starts to look for solutions by contacting their lender to inquire into refinance options; it's also when rescue artists start to come out.

These people find out about a home owner's foreclosure from public sources or even more incredibly some borrowers (home owners) are referred to the "rescue artists" by their lenders for a commission. Some may claim they will save your home or make other promises that are unrealistic and not probable. The bottom-line is that they are predators and their best interests are not aligned with yours.

Read more about Foreclosure Protection or apply now for a Free Consultation.

Acquisition Rescue is another predatory real-estate scam. This is when the broker makes arrangements for closing at which time the borrower signs over the title. At this point the people who are "helping" the homeowner pay off the amount owed to the bank and acquire the deed and any equity left in the property. The homeowner is allowed to remain in the home and pay what is called a contract-for-deed payment. These payments can be higher than the actual mortgage payment was.

Several states have passed laws to outlaw and/or regulate these rescue scams. For more information visit United States Dept. of Treasury.

There are however many safe and legitimate ways to prevent foreclosure:

LOAN MODIFICATION

This is when the terms of the loan are changed. Loan Modification can include a reduction in interest rate, a change from an adjustable rate to a fixed rate, extending the duration of the mortgage.

MORTGAGE REINSTATEMENT

This is when you pay the lender everything owed him in one lump sum. This includes any fees incurred.

MORTGAGE REPAYMENT PLAN

This is when you and the lender have come to a written agreement wherein you make larger payment than usual until the balance is brought up to date.

FOREBEARANCE AGREEMENT

A "Forbearance Agreement" is when an agreement is made between a mortgage holder and homeowner whose account is delinquent. Generally, forbearance agreements reduce or suspend the homeowner's payment for specific amount of time. Usually the homeowner will be given anywhere between 3- to 12- months depending on the circumstances. During which the mortgage holder agrees not to pursue foreclosure proceedings against the homeowner.