Arizona Foreclosure Scams and Spams

Arizona Foreclosures are at an all time high. Over one in every 147 homes received a foreclosure filing in February 2009, making Arizona the second highest state to be feeling the negative impact of the current housing crisis. ( read full article here ) But while there are many resources and tips on Arizona foreclosures available online, there is another national and local epidemic on the rise.

As short sales in Arizona increase month over month so do the investors and fly by night firms that seek to make a profit during a time of calamity. While it is no secret that scams are always floating around out there it does seem to come as a surprise to many that it’s happening in the foreclosure industry at an alarming rate.

Arizona lender’s start the foreclosure procedure by filing what is called a Notice of Trustee Sale. This notice is then submitted to the county recorder and becomes public information that can be attained by the malicious con artists that are laying in wait as if your money is the prey. There are a number of methods used by these predators ranging from constant spam mail claiming to be offering their services in reducing your loan to pesky phone calls or fliers on your door.

But have no fear! While the sinister companies and investors embark on their campaign of scam and spam there are still many legitimate tips on how to avoid foreclosure scams.

Checking it once, checking it twice: The Department of Housing and Urban Development ( HUD ) has a website that allows for an easy search for government approved foreclosure counseling agencies. This is as good a place to start as any if you’re looking for a legitimate company or wish to check to see if the company that has contacted you can be verified. Their toll free number is (800)-CALL-FHA or (800)-225-5342

Pay to stay: Don’t be fooled into thinking you have to fork over thousands of dollars to some company to garner assistance. Many of the HUD approved companies listed on the website above offer little to no cost services. Be wary of working with any foreclosure assistance companies who require a fee before providing you a solution.

Ask and don’t assume: Pay close attention to anything you sign. Don’t agree to anything on paper if you have any questions. Feel free to ask the company for clarification or even fact check it for yourself. Many fraudulent lenders or investors will try to use a variety of shady tactics like trying to take your home’s equity, offering debt consolidation efforts that they are not licensed to perform or even pressuring you into bankruptcy which only suspends a foreclosure but does not stop it. Remember to have everything in writing and only sign it if you’re comfortable with it and have no further questions on any of the details or process.

Get a second opinion: Some people never take the first box of cereal off the shelf. It’s safe to apply this kind of mentality when seeking foreclosure assistance to avoid a scam. Many reputable companies are offering foreclosure aide in the Phoenix real estate market and all over the valley. It’s always a good idea to talk to two or more agencies before making your decision. Be sure to make a list of questions or concerns before hand so that the level of information gathered from each resource can help you build a better contrast. Then if the first company you sought out is your final choice you can rest easier knowing you made an educated decision and compared.

Lastly, while this isn’t exactly a tip, there are places where you can report foreclosure scams that you have been spammed by or even dealt with and were blind sided. This kind of activity can be reported to the state and local consumer protection agencies found at the Federal Citizen’s Information Center.  While we can’t necessarily stem the rise of Phoenix foreclosures or those across the Valley we can do our part to protect ourselves and each other from those seeking earnings from misfortune.