In my next few posts, I think I’ll address what has unfortunately become somewhat common: foreclosure rescue scams. These scams prey upon people who are so desperate to save their homes that they sign up for programs that are “too good to be true,” only to lose their homes and a lot more. Let’s take a look at at the first foreclosure rescue scam, the “leaseback or repurchase scam.”

The “leaseback or repurchase scam” involves a promise to pay off your delinquent mortgage, repair your credit and possibly pay off credit cards and other debt. But, in order to do this, you the homeowner must “temporarily” sign your deed over to a “third party” sometimes referred to as an “investor.” You are then allowed to stay in the home as a renter with the option to purchase the home back after a certain amount of time has passed or your financial situation has improved. The obvious problem is once you have signed away your rights to your property, you may not be able to repurchase the property later. The new owner is under no obligation to sell the house back to you. Worse yet, after the new owner takes ownership of your property, the new owner can evict you. Furthermore, the scam artist may have taken out new mortgages against your property making it impossible for you to buy it back. Beware of this scam! Trust your gut. If it sounds too good to be true, it probably is!