5 Tips To Avoid Illinois Foreclosure Prevention Scams

H/T: Dave Simmons on Twitter for tweeting this article about avoiding foreclosure prevention scams. To someone in the Illinois foreclosure prevention industry, it is fairly easy to spot those who are on the level and those scammers looking to take advantage of those distressed homeowners just looking to prevent their foreclosure in Illinois.

Unfortunately to the uneducated homeowner, the good guys and bad guys can look a lot alike. Here's their 5 tips, plus my commentary on each, that can keep you out of harms way and keep you working with only reputable Illinois foreclosure prevention experts:

1. Try to work only with non-profit or HUD-approved counselors. If you are looking for assistance to help save your home from foreclosure, be sure the company is a reputable non-profit agency or is on the Department of Housing and Urban Development’s list of approved agencies and counselors.

I always advise clients to check with a HUD approved counselor so they can be aware of all their options. As a Realtor® and a distressed property expert, I offer only one solution, a short sale, to prevent your foreclosure in Illinois. You need to be certain that a short sale is your best option before proceeding and a HUD approved counselor is a good place to start.

2. Do not pay someone thousands of dollars to prevent foreclosure. No one should have to pay hundreds or even thousands of dollars to get help form a legitimate counselor. Pretty much all HUD-approved counseling agencies offer their service free of charge, or some may proved counseling at a very low cost.

I would amend the above statement to say: do not pay anything to get foreclosure counseling. Stick with the HUD approved counselors that are free of charge. And know that if you do pursue a short sale to prevent your foreclosure in Illinois, that there are no direct fees to use myself and the attorneys I work with.

3. Stay away from anyone who guarantees a modification or foreclosure prevention. A legitimate and reputable agency will not tell you that foreclosure prevention is guaranteed, no matter what your situation may be.

If you hear that they can guarantee to prevent your foreclosure, do not walk away, RUN AWAY! As someone who specializes in Illinois foreclosure prevention, I can tell you there are no guarantees.

4. Thoroughly read and understand anything you sign. Do not let any company or counselor pressure you into signing paperwork before you have had a chance to thoroughly go over it.

I always encourage prospective clients to carefully read over any document that I have them sign. In my case, it is usually a standard listing agreement and an authorization to allow us, Realtor® and attorney, to speak with your lender. If someone is pressuring you to sign, do not walk away, RUN AWAY!

5. If their services sound too good to be true, they probably are! Anyone who is guaranteeing a modification or promises they can reduce your principal balance value is a scam!

Just like anything else in life, if it is too good to be true, it probably ain't good at all. Stopping your foreclosure isn't an easy process and it can be painful in the process. Anyone who peddles you on something less than that is either a scammer or isn't very experienced in preventing foreclosure in Illinois.

If you have any questions about stopping your foreclosure in Illinois, give me Tim Soper, of Realty Executives Success, at (815) 439-5051. Let me see how I can help you.