Foreclosure "Rescue" Scams

7/1/2009

Lexington, KY - We've warned you in the past of scams out there that say they can prevent your home from being foreclosed upon. It seems these schemes have picked up the pace, and the sight of "foreclosed" signs in front of houses seems to be more common in the economic downturn.

Your Better Business Bureau of Central & Eastern Kentucky continues to hear from homeowners desperate to save their homes from foreclosure who have heard from companies saying they are the answer.

Some of these companies were NOT the answer, according to the Federal Trade Commission, which has recently cracked down on some companies claiming they can save people's homes, charging huge up-front fees and delivering nothing.

If you are facing foreclosure, avoid any company that uses these tactics:

  • They guarantee to stop the foreclosure process no matter what your circumstances.
  • They tell you NOT to contact your lender, attorney or a housing counselor – that's who you SHOULD be calling!
  • They collect a fee before providing any services.
  • Or they pressure you to sign paperwork you haven't had a chance to read thoroughly or that you don't understand.
  • Of course, check the company out with the BBB!

To find free answers on what options you do have, log on to the Kentucky Home Ownership Protection Center website in Frankfort at protectmykyhome.org.

And if a foreclosure rescue company approaches you, don't fall for it!

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Be a "Don’t Fall for It!" informant! If you have something to share you believe may be a fraudulent offer or scam, please let the BBB know! Call us at (859) 259-1008 or toll-free, 1-800-866-6668, or email us at info@bluegrass.bbb.org.