Foreclosure Fraud, Advance Fee Loan Scams and Identify Phishers

There is a rising trend of fraudsters and thieves who make use of the current credit crisis in the home loans and mortgage sectors for their own ends to either scam money from you or to even try to steal your identity. It is important to understand that despite your current situation being however bleak it is when it comes to your cash flow that becoming a victim of these crimes/fraud activities is many times worst than struggling with your current bad credit loans.

One relatively new type of scam developed is “foreclosure scams”. Most people who are teetering on the edge of bankruptcy often suffer from tunnel vision syndrome and reach out to any possibility of aid even if the source is from a less than credible source. Many of these foreclosure scammers pose as credit repair and negotiation experts who promise to get you out of your situation by using their powers of negotiation with the banks or other lenders for a certain price. Once they have convinced you to turn over your precious money they will do only do routine tasks that you can even do then report sadly that they have not succeeded because your case is one of the “worst they have seen”.

Another type of fraud that is related to foreclosure scams are refinancing fraud schemes. Often the last ditch effort for people in order to avoid bankruptcy is to refinance their loans. The fact is that refinancing when you are at the verge of bankruptcy is extremely difficult thus opening the door up for those scammers to step in. Often the scammers will also pose as credit renegotiation experts that have inroads with banks and lenders who will sell their service to you for a fee. Another know method is for the “experts” to get you to sign a document that allows them to drain the equity of your home and often ending up in the victim loosing their homes that they have tried so hard to keep.

These scams and fraudsters will prey on you at your most vulnerable time and use classic bait-and-switch tactics in order to obtain what they want then leave you to weather the outcome. You should be very careful with lenders that aggressively pursue you or even agents that keep on pushing you to sign up for their service. Most lenders or legitimate service agents don’t push for their loans or services.