Scam targeting troubled homeowners
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GREENSBORO -- Officials with the Better Business Bureau are warning homeowners of a surge in bogus foreclosure companies. Experts say with some 1.7 million foreclosures expected in the next two years, con artists are trying to take advantage.
The BBB calls these companies "foreclosure rescue companies." Homeowners desperate to keep their homes are either contacted directly by one of these organizations or they find one searching online.
The scam works with the company asking for a fee up front, sometimes as much as $1,300. They tell the homeowners they'll renegotiate the terms of the mortgage and stop the foreclosure.
The reality the BBB says is that these companies do very little, if anything at all to fulfill their end of the deal. Most victims lose not only their homes but also that upfront fee.
There are tips to avoid scams.
But the Better Business Bureau offers several helpful tips:
-Before you pay any company that claims to rescue homeowners from foreclosure get a free Reliability Report from the Better Business Bureau.
-Talk with your lender about possibly restructuring your loan payment or refinancing.
-Never sign a contract if you feel pressured and never sign away ownership of your property. Have someone you trust look over any paperwork you may not understand.
The state attorney general's office is also a great place to find out what kind of scams are out there, especially in North Carolina.
For some added resources, visit Better Business Bureau