Foreclosure Scams To Avoid

It seems impossible to fathom that someone would take advantage of people in foreclosure, but it does happen. They target people in foreclosure because they know that people in foreclosure will do anything keep from losing their home. One of the best way to guard against being swindled is to check the companies BBB (Better Business Bureaus) report.

The BBB keeps records for three years. Most people who have been taken advantage of usually check on a company AFTER they have a problem, only to find out that the company has, in some cases, over 100 complaints against them. First check to see that the company is listed with the BBB. Most companies that have a satisfactory record with the BBB will prominently display the clickable BBB logo on their website. If you don’t see a BBB logo that links to their BBB report on their website this may be a red flag as some websites will illegally display the BBB logo on their website but you can't click on it to see their report. A company doesn't have to be a member of the BBB to have a report about their background. Since the BBB rates companies regardless of being a member, many companies don’t pay the high $400 membership fee the BBB. This should not be considered a negative mark against them. You will also want to look and see how long the company has been in business. You may not want to trust a company to save your home if they have only been in business for a couple of months.

Another red flag is if a company doesn't accept Debit Cards or Credit cards as a form of payment. Be very wary of a company that only accepts Western Union, Money Orders, or uses Pay pal to accept credit cards. Companies that only accept these forms of payment go through little to no screening from any organization. If you have a problem with them you will have no recourse but to sue them in court and most people in foreclosure can't afford to hire a attorney to go after them. They know this and exploit it. In order to be able to accept Debit/Credit Cards a company has to have a Merchant Account, and that means that the banks have investigated them thoroughly to guard against fraud. Getting a merchant account is a long and tedious process that requires the principles of the company to qualify, much like qualifying for a Mortgage, and the banks are VERY thoroughly in their investigations, they don't just hand out Merchant Accounts because the bank is ultimately responsible for fraud. This means that if you have paid by debit card and are unhappy you only have to call your bank and they will immediately credit your account and then they will go after the merchant for the money. Debit cards are by far the best way to insure that you are dealing with a creditable company.

If you follow these two simple rules you can feel confident that you are working with a real company and not some fly-by-night operation that will disappear with your money.