The Colorado Springs real estate market has a high level of homes that are in some state of distress - facing foreclosure. When the numbers are as high as they are across the country, there are always, inevitably, scoundrels out there to take advantage of desperate people.

The best defense against Colorado Springs foreclosure scams is EDUCATION. Facing foreclosure is already a highly stressful situation. The last thing you need is to be con'd by a criminal out to make money off of your misfortune. The more you know about your rights and options as a Colorado Springs homeowner, the less likely you will be taken advantage of.

Read an example of a Chicago home owner who was the victim of a forecosure scam

If you are facing foreclosure, your top 5 options are:

1. Catch up on your mortgage payments.
2. Enter into a forbearance agreement with your lender (long story short - lender agrees to take all the missed payments and break them up over a few months and add them to your payment until you have paid off your past payments...)
3. Refinance the loan into a manageable monthly payment (VERY specific circumstances only)
4. List your house with a Colorado Springs Realtor® and sell it before the foreclosure date.
5. Let the home foreclose.

If someone approaches you with an answer to your Colorado Springs foreclosure issue, OTHER than those listed above, be wary.

According to the FBI (source), there were 6.900 suspicious reports  of mortgage fraud in 2003, and in just the 1st 8 months of 2008, there have already been 48,500 suspicious reports of mortage fraud. That is absolutely discraceful... and these are just ones that have been reported. (Imagine all the ones that haven't been reported...)

The people who prey on homeowners facing foreclosure are smart individuals or small groups of individuals who are taking advantage of people who do not fully understand their options. According to this recent article on MSNBC,

"There are many variations on the scams, but they all boil down to two types. There's a simple fee-based racket, in which the criminal offers to help the homeowner stave off foreclosure, collects an up-front fee and then disappears. But the more lucrative scheme involves seducing homeowners into complicated transactions that allow the middlemen to steal equity in the house or walk away from the closing table after netting thousands in phony payouts."

If you are facing forecosure and someone approaches you with an ANSWER to your problem, do NOT take their answer at face value. Take some time to reserach their "solution". Talk to several local real estate agents - preferrably real estate agents who specialize in helping homeowners facing foreclosure ...  and talk to a real estate attorney.

Ultimately, the BEST thing you can do to arm yourself against being taken advantage of by foreclosure assistance scams is to ...

Educate Yourself About Your Options When Facing Foreclosure.

Here are a couple articles that you can read to help educate yourself about the different scams that are out there:

• Foreclosure Vultures ... BEWARE! (Colorado's NEW Foreclosure Protection Act)
• Millions at Risk for Foreclosure Fraud
• Beware of Foreclosure Assistance Scams
• Beware Foreclosure Assistance Scams (Although I do not personally, recommend any of the books listed at the end of the article)
• $35 Million Foreclosure Assistance Scam Busted in Maryland
• Massachusetts AG Wins $1.8 Million Foreclosure Assistance Scam Settlement From Lenders, Servicers

Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Clients Choice Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate
Certified Distressed Property Foreclosure Experts
(719) 434-7525