A 2023 NBC News report posted on the NBC News website states that home foreclosures are on the rise. A separate report from the NBC News website states that as of June 2023, Illinois has had 1,358 foreclosures. The foreclosure spike has contributed to foreclosure scams that target people at risk for foreclosure. The scammers offer to delay or prevent foreclosure in exchange for a fee or other information. If you’re facing foreclosure, beware of these common foreclosure scams.
Deed
A scammer might offer foreclosure defense by offering to help you refinance your property. However, the scammer says you must first sign over the deed to stop the foreclosure. The scammer promises to return the property to you – but it never happens.
The scammer has your deed and can use your property to their benefit. You might have to pay rent to remain on your property or face eviction. And if the scammer sells the property, you have no right to the profits.
Seminar
The seminar scam is when a scammer hosts a workshop or a seminar that is supposed to provide information on foreclosure prevention. Property owners pay a fee to attend the event but get nothing in return. The scammer provides information that is freely available online or in published books. The goal of the event is to take money from the property owners.
Government/Bank
A scammer can pose as a government-affiliated or bank-affiliated mortgage modification program. The fake program promises to modify your mortgage so you get lower monthly payments. All you’re supposed to do is pay the program fees and provide the requested personal information. However, no assistance is forthcoming. The scammer takes your money and personal information to use how they wish.
There are a variety of foreclosure scams that target desperate property owners. Unsolicited offers of help or services to deal with foreclosure are suspect.