Under the threat of losing their Illinois residence to foreclosure, some homeowners unfortunately fall victim to foreclosure rescue schemes that take advantage of those who have fallen behind on mortgage payments. These perpetrators promise to pay off the delinquent mortgage and help the homeowner stay living on the property.
How foreclosure rescue schemes work
Typical foreclosure schemes involve a mail solicitation where a company promises a short-term financing deal from a private investor to pay a delinquent loan. The homeowner is told they can stay in the residence and rent from the so-called investor but convinces them to transfer the home’s title to the investor as collateral. The investor may also offer a straw borrower for new financing.
In these schemes, everything is false. The homeowner deeds their title to a scammer or another third party and ultimately loses their home. If you are a victim of mortgage fraud, you may be able to use this as a foreclosure defense when trying to save your home.
Intentional deception for financial purposes can be considered a federal crime. Red flags of a mortgage foreclosure scheme include:
- Purchasing a home while continuing to rent
- Purchasing a property when someone already owns another property
- Unable to contribute funds to a closing
How to resolve a foreclosure scheme
Professionals orchestrate most mortgage foreclosure schemes in Illinois. In Illinois, the Mortgage Foreclosure Law and Mortgage Fraud Task Force can help resolve your problem. You can also take legal action to help resolve foreclosure issues that are not your fault. Foreclosure may not be necessary if you take the right steps.
Before you submit to foreclosure, please make sure that you assess all options. You may be surprised to learn that you have not exhausted all your options. Ensure that you do this before making a final decision.