When a person faces foreclosure, it is very easy to make a serious financial blunder because of the enormous personal and financial pressures that accompany the foreclosure process. In desperation, many individuals find hope in the offerings of disreputable businesses that scam homeowners already in a dire situation. It is important to know the warning signs of a foreclosure scam if you find yourself facing a similar difficult season.
If you’ve heard that bankruptcy can stop foreclosure, the good news is that this is technically true. However, it is also important to remember that, unless the debtor personally participates in the bankruptcy process, a judge is likely to toss out the bankruptcy and leave you on the hook.
Often, a business running this scam may require a number of fees upfront to stop the foreclosure, then take the money you give them, file a bankruptcy in your name and wait for you to pick up the pieces. Not only might you lose a significant amount of money in this instance, but you may also still lose your home as well.
If any party contacts you directly and offers such a service, it is wise to scrutinize it heavily or avoid the offer altogether. That is not to say that you should avoid any and all guidance through such an issue, but it is important to seek reputable guidance that you can trust to act ethically on your behalf. An experienced bankruptcy attorney can help you understand your legal options and develop a personalized plan to address your financial difficulties properly, keeping your rights protected in the process.