Going through foreclosure is a difficult process whether you own residential or commercial property. Foreclosure is the end of an era for a property owner that has come due to the loss of a job, debt, illness or even the death of a family member. Foreclosures happen across the state of Florida quite often, but you need to make yourself aware of the most common foreclosure scams in order to protect yourself.

Many property owners facing foreclosure tend to apply for refinancing because they are having trouble making their current monthly payments. Make sure you check the terms of the refinancing closely. Many lenders attempt to sneak in a balloon payment. This happens when you pay just the interest each month and then at the end of the loan term, the principal is due immediately in one lump sum. Most people cannot afford this balloon payment and wind up losing their home to foreclosure anyway.

Equity skimming is another common foreclosure scam in Florida. This typically occurs when someone approaches you about buying your property and promises to give you money after the sale to help you get out of debt. It is usually suggested that you move out quickly and deed the property to the buyer. The buyer usually collects rent payments for a brief period, but fails to make mortgage payments. This leads to foreclosure and even though you are no longer on the deed, you could still be held accountable.

There are fake counseling agencies operating all throughout the state of Florida that offer services for a fee. These services could include helping you renegotiate the terms of your loan, pursuing a pre-foreclosure sale and more. These are all services that you can perform on your own for free.

If you are headed for foreclosure, contact our firm to discuss your situation and have your questions answered about the various scams in Melbourne, Florida, and how you can protect your rights.