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Once a foreclosure suit has been filed against you, your name and address are public information, available to anybody who wants to use the information to their advantage. If you've already been served, I'm sure you've experienced the deluge of letters, flyers, postcards, and telephone calls offering you all different types of deals. Many of these offers are perfectly legitimate (although you always must consider whether they are in your best interest). However, you need to be aware that people are out there, waiting to take advantage of panicked, stressed-out homeowners who are facing an unknown and difficult situation. Every year more and more people fall victim to con artists and schemes whose sole goal is to rob homeowners of their money, their house, or both. So how do you avoid becoming a victim? Knowledge is power! Learn these warning signs and follow these tips to be able to recognize a bad offer when you see it, and then quickly throw it what I like to call the circular file (otherwise known as the trash can)! Do Your Research Don't let the stress and time pressure of a foreclosure cloud your judgment. One of the most important things, in any transaction, is to know who you are dealing with. Many con artists put a front, meaning they create the illusion of being a legitimate company when they really aren't. Anyone involved in mortgage lending or brokering must have a Florida license. So do lawyers. Ask for their license. Ask to see proof of identity. Look into the background of the company. In addition, many such people and companies routinely file eviction papers to throw the original owners out of their homes. If they've done this, you should be able to see it in the public records at the local courthouse. Look up the records. Ask for a customer reference - someone who has actually been helped. Be sure to check out the reference too. What Is The Structure Of The Proposed "Deal"? A clear warning sign that someone is trying to take advantage of you is when they ask you to give them your house. OK, so nobody's going to ask you outright "Can I have the keys to your house please?" but they will likely ask you to sign what is called a "quit claim" deed that transfers 100% of your interest in your home over to them. They may tell you that the ownership transfer is "temporary," while they try to work with your lender. However, they are not trying to help you. They will likely take any equity you may have left in your home, leaving you in a far worse situation than you were in initially. What Are You Asking, How & Why? Always keep in mind the questions "what, why and how?" Ask yourself exactly what the person, people or company claiming to help you wants you to do, and more importantly, why do they want you to do it? One common warning sign of fraud is that the person/company will ask you to keep silent about your arrangement with them. You have to ask yourself "why?" Plus, pay attention of how they are asking. Is someone showing up on your doorstep offering help? Few legitimate lenders will ever send someone to your house to sell you their services. Ask for identification. Tell them you will have a lawyer review all the paperwork. Do they try to give you the run around or convince you not to seek legal advice? Why? Timing Is Everything Facing foreclosure can be scary. Beware of anyone who tries to scare you even more. Con artists will often try to pressure you into signing papers under severe time constraints, often with this scare tactic: "Sign here or you will lose your house tomorrow!" They will wait until just right before the foreclosure deadline, then give you a large amount of papers to sign that you don't have time to read or understand. In any situation in life, you should never sign anything unless you know what it says and understand what it means. If you have doubts, contact a lawyer to review the paperwork. Likely they will try to dissuade you, but no matter what, never sign papers unless you know what they say. Know The Law Where you aware that is against the law in Florida for anyone but a licensed Florida attorney to help you negotiate a loan modification with your lender? There is a reason for this law! There are other laws regarding foreclosure and loan modifications meant to protect you. It helps to know what they are. And finally.... Use Common Sense I'm sure you've learned at some point in your life that if something seems too good to be true, there is a high likelihood that it is too good to be true! The pressure of foreclosure can be overwhelming, but it's important to keep your wits about you and to use common sense. Do your research, educate yourself and don't be afraid to get help if you need it. Remember, you have rights.
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It's tough to know your options when facing foreclosure or struggling to make payments. The Florida foreclosure attorneys at Kilpatrick & White can help. We can defend your foreclosure, negotiate your Florida loan modifications, or facilitate your short sale or deed in lieu of foreclosure. Free guide at
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