The United States Trustee’s office warns you about bankruptcy foreclosure scams. These are serious matters that can get you in more trouble than the financial trouble of which you were trying to escape in the first place.
If your home is posted for foreclosure in Texas you have very little time to act. The longer you wait the more likely it is that you will lose your home and fall victim to one of these scams. And, because of this there are a lot of people or companies out there that might be willing to take advantage of you.
Should you receive a letter in the mail that reads something like this, you need to be skeptical: “Attention Home Owner: Save your homes–Stop foreclosure now! Before you file bankruptcy call me first. We refinance mortgages regardless of your credit history!”
Remember, things that sound too good to be true generally are too good to be true.
I do not want to create any false illusions. Fighting off foreclosure after it is set in motion is not easy. You are going to have to work to save your home. Often, Chapter 13 reorganization under the Bankruptcy Code is the only safe solution you might have. Most of the other letters and offers and knocks on the door you receive are generally people trying to take advantage of your bad situation, and often obtain ownership of your house.
You need to recoil if anybody asks you to transfer ownership of your house you are trying to save or any part of that ownership. Chapter 13 bankruptcy does not require you to do that. The Court simply issues an order or injunction telling your home lender to stop until you have a chance to reorganize.
The problem with working with these non-lawyers is that by the time you find out it is a scam and pull out, you generally do not have time to seek a legitimate solution with an attorney. The time wasted in dealing with these people can be the time that was needed to actually get a court order stopping the foreclosure.
One of the favorite scams is called the “fractional interest transfer” where typically a person or company claiming to help request you transfer maybe 5% to 10% of your property to a fictional entity that will file bankruptcy.
Make no mistake about it, these companies and people preying on you because your home is in foreclosure are after money. They are out to collect fees from you and then to disappear. Or, they are out to obtain ownership of your home.
If your home is posted for foreclosure you need to contact a bankruptcy attorney immediately. Most homes do not get posted just because you are a little behind on payments. It is usually fool hearty to believe you can both catch up and not miss the next payment. Again, the longer you wait to contact a lawyer, the more likely it is that you could actually lose ownership of your home.