what is foreclosure fraud
The following tips can help you avoid being a victim of foreclosure fraud: 1  Remember that signing over a deed to a different person does not automatically relieve you of any mortgage payments or outstanding debt. 2  Likewise, it is not always necessary to sign over the deed to your home in order to obtain new financing.Hidden Balloon Paymentsâ : In this type of foreclosure fraud, a lender will offer to save the homeowner from foreclosure by offering a discounted mortgage refinancing plan. The plan may involve lower monthly payments, but this is because the homeowner is only paying the interest for each month.