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When the economy took a downturn several years ago, Jeff Lyon took a hit and fell behind on his mortgage payments. Then he was injured on the job and was hospitalized for a month and a half. When he finally got released from the hospital, he was too far in debt to get out by himself. In desperation he turned to an attorney who promised to help him avoid foreclosure.
Now, the foreclosure process against Jeff Lyon is complete. Any day now he expects police will knock on his door to evict him. All of the money he paid to the attorney was stolen and it is unlikely he will get it back. Lyon thought he was hiring a qualified attorney. In actuality he was hiring a scam artist.
What to watch for
Lyon, and thousands of other desperate homeowners like him fall victim to scams like this one each year. There are a number of warning signs that could have alerted them before they lost their money, and in some cases, their homes.
A first warning sign is that the attorney asked for payment up front. A reputable attorney will take payment on completion of services rendered.
Another big warning sign is when an attorney asks you to make mortgage payments directly to him/her rather than to the lender. A scammer may also try to discourage homeowners from communicating with their lenders.
The scammer who got the best of Lyon, did the same to at least 14 other people. In all he collected tens of thousands in mortgage payments with the promise that he would pass them along to lenders.
Always double check
Before giving anyone access to your personal financial information you need to confirm that that person is who they say they are. You can check with the Better Business Bureau in you area to see if there are complaints filed against a person or business.
If you are suspicious that a person may be attempting to scam you, you can contact your local police department to report it.
Business, real estate, and bankruptcy law and litigation news brought to you by mbblegal.net
Source: cbsatlanta.com/story/24734610/how-to-spot-a-foreclosure-prevention-scam
Now, the foreclosure process against Jeff Lyon is complete. Any day now he expects police will knock on his door to evict him. All of the money he paid to the attorney was stolen and it is unlikely he will get it back. Lyon thought he was hiring a qualified attorney. In actuality he was hiring a scam artist.
What to watch for
Lyon, and thousands of other desperate homeowners like him fall victim to scams like this one each year. There are a number of warning signs that could have alerted them before they lost their money, and in some cases, their homes.
A first warning sign is that the attorney asked for payment up front. A reputable attorney will take payment on completion of services rendered.
Another big warning sign is when an attorney asks you to make mortgage payments directly to him/her rather than to the lender. A scammer may also try to discourage homeowners from communicating with their lenders.
The scammer who got the best of Lyon, did the same to at least 14 other people. In all he collected tens of thousands in mortgage payments with the promise that he would pass them along to lenders.
Always double check
Before giving anyone access to your personal financial information you need to confirm that that person is who they say they are. You can check with the Better Business Bureau in you area to see if there are complaints filed against a person or business.
If you are suspicious that a person may be attempting to scam you, you can contact your local police department to report it.
Business, real estate, and bankruptcy law and litigation news brought to you by mbblegal.net
Source: cbsatlanta.com/story/24734610/how-to-spot-a-foreclosure-prevention-scam