Bullet Point: Be cautious of anyone offering to save your home from foreclosure

Transcription

1 TITLE CARD: MORTGAGE FORECLOSURE SCAMS TITLE CARD: BEWARE OF SCAMS TITLE CARD: INTRODUCTION The faces the camera. Hello. This video will teach you about different scams to watch out for when you are facing foreclosure. You can read more about these scams by clicking on links on this page to more detailed information. If you are facing foreclosure, you will receive a lot of solicitations in the mail, over the phone, and even in-person at your door. Be cautious of anyone who approaches you offering to help you save your home from foreclosure. No one should approach you outside the courtroom and offer to help. People who solicit you with offers of help may actually just be trying to take advantage of you, and they may try to steal your money, your home, and your home equity. There are even scams you should watch out for after your foreclosure case is completed and your home is sold, if there is money left over after the sale. Bullet Point: Be cautious of anyone offering to save your home from foreclosure TITLE CARD: FORECLOSURE CONSULTANTS

2 When you are facing foreclosure, some people will approach you and say they can help you negotiate with your lender, slow down the foreclosure, improve your credit, or obtain a refinance loan for you and will want to charge you a fee of several thousand dollars. And they often want you to pay this fee up front. These are usually empty promises. There are non-profit agencies that will help you negotiate with your lender for free. Or you can hire a lawyer. And there is now a law that requires that such services -if provided for a fee - must be completed before you have to pay any money to the so-called foreclosure consultant. So do not pay any money to anyone without understanding why you are paying the money, or before you get what you have been promised. Bullet Point: Don t pay up front fees to anyone Bullet Point: Understand and get what is promised before paying fee [Loan Auditors or Examiners] Some people and companies may offer to look at your loan documents to find mistakes. The report these companies produce is often filled with useless information. Beware of these people and companies. TITLE CARD: FORECLOSURE RESCUE FRAUD Other people or companies advertise programs through which you can sell your home and rent it back, with

3 the promise that you can then buy your home back when you are on your feet again, financially. Sometimes these programs say that your home will be placed in a trust, or that you are not transferring title to your home completely, or that this is just a type of loan. (MORE) (cont'd) Do not trust these promises unless you have had an attorney review the paperwork. Usually, the repurchase price is set so high that you will not be able to afford to buy your home back, or the rent payments are not affordable, and you can be evicted when you fall behind. Also, once someone else has title to your home, he can take out a new loan on your home. This is how your home equity can be stolen. These types of sale-leaseback transactions are now regulated by state law, and you have certain rights if you enter into one of these deals. Read more about these scams and the requirements of the state law in the information you can link to from this page. Bullet Point: Seek attorney review for any transfer Bullet Point: You may end up evicted Bullet Point: You may use your home equity Bullet Point: Sale-Leasebacks are requested by law TITLE CARD: SURPLUS FRAUD Sometimes after you go through a

4 foreclosure, there will be money left that you can claim. This is called a surplus. The money is there because the property that was in foreclosure sold at auction for more than you owed. Once all the debts against the property are satisfied, you can collect this money. The process for collecting the money is described later in this video. (MORE) (cont'd) Sometimes companies or people will approach you and tell you they will collect your surplus for a percentage of the money that is coming to you. These people may or may not be attorneys. Do not sign papers saying that someone else can have your surplus or that they can work on your behalf. No one but you is allowed to receive your surplus. You do not need an attorney or anyone else to collect your surplus. The process for collecting your surplus is designed to be something you can do yourself. Even if you make a mistake, it is possible to correct the mistake and come back to court. The judges understand that you are new to the court process, and everyone involved will try to make the process easy to understand. Be sure to search the Helpful Organizations section below to find free or low-cost legal assistance. Even if you hire an attorney, you will be required to come to court to give testimony, and you will later have to come to the Clerk's office and show your identification to collect the surplus. Anyone who tells you that they can do these things for you is lying. It is illegal for a non-attorney to offer to do legal work for you. If you decide to hire an attorney to collect your surplus, even though it is not necessary, that attorney should charge you a reasonable fee based on an hourly rate. No one should charge you a percentage of the surplus. Attorneys are not allowed to charge a percentage in these types of cases, and, if they do, the charge will usually result in you paying far more than the service is worth. Bullet Point: Surplus is money left over after paying mortgage

5 Bullet Point: Do not give away surplus Bullet Point: Only you can receive your surplus Bullet Point: You must show identification (ID) to get surplus Bullet Point: Do not pay fees that are percentages of the surplus TITLE CARD: CONCLUSION Remember, many people who approach you to help for a fee are often trying to steal your money, home, and home equity. Search the Helpful Organizations below to find free or low cost legal assistance. Also, remember that if there is money left over from the sale of your home, you do not need the help of anyone to claim it. Go to court to claim your surplus. Finally, click on the links on this page for additional information. Bullet Point: Be cautious Bullet Point: Go to court to claim surplus Bullet Point: See links below Remember, there are many organizations and resources that can help answer your questions about Mortgage Foreclosure. Be sure to explore resources that can help you, contact your state or local bar associations, and visit illinoislegalaid.org for more information. Bullet Point: Explore helpful resources Bullet Point: Contact your state or local bar associations Bullet Point: Visit illinoislegalaid.org