Foreclosure Fraud Defense

Foreclosure Fraud Defense

The Great Recession forced many homeowners into foreclosure. Nearly ten-years later, many families are still losing their homes to foreclosure. When a homeowner does not pay their mortgage payments, the lender can exercise their rights to foreclose on the home. The foreclosure process is long and complicated, which creates an opportunity for foreclosure fraud schemes to be committed.

The federal government and the State of Arizona are cracking down hard on these perpetrators. Meaning many innocent people may be falsely accused.

Foreclosure Fraud Defined

Foreclosure fraud targets homeowners who are unable to pay their mortgages and are about to lose their homes to foreclosure. Foreclosure fraud can result in ownership of the home being transferred to the perpetrator of the fraud, or can result in monetary gain for the perpetrator, possibly for large fees for services that are never provided.

Common examples of foreclosure fraud include:

  • Unethical investors: an investor may offer a bailout to a homeowner facing foreclosure by purchasing the property and taking the homeowner’s equity without providing any further assistance.
  • Foreclosure consulting agencies: are usually investors looking to make a large profit by taking a homeowner’s equity, posing as a foreclosure assistance company. They often convince the homeowner to sign a purchase agreement that can be assigned to someone else for a profit and result in the homeowner losing his or her house.
  • Debt negotiating: involves companies that offer to negotiate or consolidate debt for the homeowner. However, the homeowner must prepay high fees for these services that offer nothing that other non-profit agencies provide for free.
  • Financial services: individuals posing as financial services companies offering to assist homeowners facing foreclosure with tax advice, debt management, real estate sales, and pre-foreclosure sales. Fees are usually required up-front. Many are not legitimate corporations and do not possess a license as required by the Arizona State Banking Department for debt or credit counseling.

The above list is not exhaustive. There are many more foreclosure fraud schemes targeting distressed homeowners.

Foreclosure Fraud Defense

Involvement in a foreclosure scam can lead to harsh penalties. If you have been accused of foreclosure fraud it is essential that you contact a foreclosure fraud defense attorney as soon as possible.

Even if you are confident that your actions were lawful, we strongly urge you to seek the help of an attorney.

When you hire us, we will thoroughly investigate the evidence and we may be able to dismantle the case against you:

  • Your rights may have been violated during the investigation.
  • The allegations may have been made unfairly against you.
  • In their zeal to prosecute these types of crimes, officials may unfairly target honest people.

We will fight back for you and protect your rights. Contact us or call now (480) 219-1366 for a consultation.