For others, contacting the lender at the first sign of financial problems seems to be not so good of an idea. It may be because they are embarrassed to discuss money issues to others or they simply don’t see the need to inform their lender right away of their present financial standing. But the truth is, asking for your lender’s help will save you a lot of trouble and it will help you save your home.

People often have the perception that lenders, like banks, think only of themselves and don’t care about the future of the borrowers. This leads to the common notion that lenders show no mercy to homeowners who have defaulted on payments and will take the homes when the very first window of opportunity opens. The truth is lenders like owners will do everything they can to avoid home foreclosures. So again, the best way to save your home is to work with your lender to solve the problem.

Lenders usually send a Notice of Default if you miss payments for 3 consecutive months. But this doesn’t mean that you have to wait until you get the Notice to take action. Call your lender as soon as possible. Inform them why you have defaulted on a payment and ask for an alternative payment schedule or temporary lower rates until your finances have returned to normal. You can also ask for Forbearance where your lender waives some of the penalty fees as a result of default or a mortgage refinance without going through the process of re-application, whichever you think is more economical. Mortgage lenders are more than willing to help you to avoid repossessing your home.

The rule of the thumb is: Talk to your lender, inform them the cause of your delay, and ask for payment alternatives. Don’t wait too long before you make a move to save your home. Act fast. Understand the gravity of the situation and do something. It is your obligation to pay your mortgage but when worst comes to worst, your lender will help you keep your home.

This is when the swindlers find their way into your mailbox or give you a call. Foreclosure scams are very common as much as the problem itself. Since homeowners believe that they have no choice they fall for these traps and make their situation much worse than it was.

Scam operators also advertise online, publish advertisements in the local newspaper, distribute flyers, and call homes which are included on the foreclosure list. They call themselves mortgage consultants who offer foreclosure services or advertise with “We buy houses” slogans.

Most Common Scams:

Bankruptcy Foreclosure Scam

They operate by promising the homeowner that their house will be saved. In return they will either ask for the homeowner to pay their mortgage directly to them, hand over their deed and pay rent, or obtain refinancing. But instead of fulfilling the other end of the bargain they don’t contact your lender or obtain refinancing for you. They keep all the money and file bankruptcy without your knowledge.

Since the homeowner is not aware that bankruptcy has been filed, they fail to participate in the case. The case is dismissed and the house continues onto foreclosure. Apart from loosing money and your home, you will also have a bankruptcy on your record.

Equity Skimming

The operator poses as a buyer. The operator promises the homeowner to pay the mortgage or given them a sum of money once the property has been sold. The operator then convinces the homeowner to sign over the deed and move out. The homeowner can stay but they have to pay rent. If they opt to move out the operator lets a third party rent the property. The operator does not pay the mortgage and lets the mortgage lender foreclose.

If the house has equity, the operator sells the property and pays off the debt. Then the operator keeps the equity that the homeowner could have had if they sold it.

1. Most importantly, deal alone with companies that are carry by people that have been in business for at least 10 years. There are many companies that offering foreclosure lists that have no clue on what the realty industry is all about. You need to be sure that you’re only dealing with a real estate company that is professionals compiling their lists. It will place your mind to ease from the very beginning.

2. Ask the company that you’re looking at how often they update their foreclosure list. You won’t prefer to join up with a service that only updates their foreclosure list at one time or twice a year; it means that you’ll be chasing after stale leads. Be sure that the company you select work with has professional person who updated the foreclosure lists on a day by day basis. By making this you’ll assure yourself of only seeing the properties that are available.

3. Try out out the customer service department in front you sign up on any service. Just like in another business, .the grade of customer service is very crucial. You’ll prefer to make sure that you’re dealing with a company that will converge your needs. If you’ve a query, it’s crucial that you get a prompt, accurate answer.

4. Company will have to give birth plenty of favorable recommendations and acknowledgments in order for you to consider them. This is very important since you can talk with somebody that’s had success with a certain foreclosure list, you’ll be able to expect another specific questions that you may have. Tops services generally have a strong following of investors that use them time and time again. It is not entirely companies offer the same forms of lists, so make sure you’re dealing with a company that bears the types of lists you’re looking for.