Utah Officials Give State Warning Against Foreclosure Fraud

by on States

The current economic state has triggered the Utah Department of Commerce to issue a warning against foreclosure fraud.

With the increasing number of foreclosures, the Utah Division of Real Estate expects an increase in the foreclosure rescue scams within the state. It is part of their duty to warn consumers to be cautious on fraudsters and offer tips for the prevention from becoming its victim.

Some advices on spotting fraudsters and other advices for homeowners facing foreclosure are shared by the experts. These are the following:

  • Never sign your home over to any third party. One scam includes a fraudster allowing distressed homeowner to sign the home over the company, which will be responsible for the credit, and later resell the home to the owner.
  • Declaring bankruptcy will not necessarily help. It is just a last resort.
  • Once you are in danger of a loan default, immediately contact your lender. Statistics provided by America’s mortgage bankers show that about 60 percent of homeowners facing foreclosure never reach out to their service lender. Having a continuous conversation with your lender is greatly important.
  • Generally, banks are willing to work with homeowners regarding their home loans. They help you avoid foreclosure if possible. Often, banks consider foreclosing more expensive than working with the distressed homeowner, though it is not always an option. For as long as you have a job or you have something to use for payment, the bank will be motivated to work with you. But if you lose all your means to pay, then there is no other option for the bank but to foreclose your home.
  • To avoid foreclosures, you may consider the following options: repayment plans, refinancing, forbearance or deeds-in-lieu. Whatever option you choose, be aware of its results to your credit.

Be a wise consumer. Never fall into the traps of foreclosure frauds, and never ignore warnings.