RANDOLPH AIR FORCE BASE, Texas –
Home foreclosure can be a worry for every homeowner.
Lately, there have been many stories in the spotlight of people having a hard time making mortgage payments, causing the number of foreclosures to grow.
Some homeowners in foreclosure still have significant equity in their home. Equity is described as the difference between the amount you can get from selling a home and what is owed on the home.
A scam known as "equity stripping," has become a concern among homeowners.
According to officials, the scam works like this: a homebuyer gets behind on mortgage payments. The predatory lender offers a "loan to get caught up" on the delinquent mortgage payments and in exchange for the rescue, the homeowner signs over the title to the predator, with the promise that the homebuyer may remain in the home while paying rent. The predator then sells the house to someone else and the original homeowner gets an eviction notice.
The scam is called a loan, but it is not. It really is a buy-out with a leaseback. The scammer preys on the vulnerability of the homeowner by offering much needed help. Numerous states have passed laws designed to deter rescue loan fraud, but Texas is not one of them.
As is the case with any scam, avoidance is the best medicine, officials said. If you are delinquent in payments or are facing foreclosure, do not bury your head in the sand. The longer you wait to get help, the harder it can be to find good solutions.
Homeowners in foreclosure who still have equity in their home usually have two options. One, sell the home and take cash for the equity. Or two, get new financing to solve the foreclosure. The best choice will depend on each homeowner's circumstances.
There are many reputable nonprofit organizations and government agencies who can help advise homeowners in foreclosure or behind in loan payments. For assistance, contact the Texas Office of Consumer Credit Commissioner at (800) 538-1579.
Team Randolph members who believe they have been a victim of a foreclosure scam or similar fraud can contact the 12th Flying Training Wing Legal Office at 652-6781 or the Texas Attorney General at (800) 252-8011.