avoiding foreclosure scams

Rent-to-Buy Tactics

Rent-to-buy is another foreclosure rescue scam. In this scheme, the con artists have you hand over the title to your home to them and pay rent, so you can buy it back later when you have more money. Why do they suggest doing this?

1. So a borrower with a better credit score can get new financing and help you save your home
2. So the borrower can build up equity, which is transferred to you
3. So a government agency can give you a loan with a better interest rate

“A” is correct. Unfortunately, the terms these deals include are usually so costly that you can never afford to buy back your house. The scammer ends up with your money, and you end up losing your home. If the new borrower defaults, you may even be evicted. Scammers may also raise the rent to the point you can’t afford it, and once you’re forced out, they are then free to sell your home.