Debt Freedom Relief Scam
Debt freedom relief scam is carried out in many forms; but there is one thing that is common in all of them.
The commonality is that consumers are in deep financial debts and they need some help in getting out of it. Therefore they sought out) or in some cases they were solicited) an agency that states that it can help.
This is an example of debt freedom relief scam.
Jean is having difficulty paying her monthly mortgage, so she turns to a debt relief agency for help.
The agency promises to help her and goes about getting certain information from her. Alone the way the agency tells Jean that the best thing for her to do is to transfer the "house" over to a friend or relative for a little while. This friend or relative must have a good credit rating.
Jean is told that by doing this, she will not have to pay the mortgage for a while. With this being the case, it will allow her to save her money.
A new mortgage is then taken out on the "house".
The agency promises to make the monthly payment on this new mortgage for a while.
Since the new mortgage is a lot more than the first mortgage, the first mortgage is paid off. However the monthly payments for this new mortgage is a lot higher than the previous one.
The agency, even though it promises to make the monthly payment on the new mortgage for a while, makes no payment.
The agency cashes in on the equity of the house and obviously it also cashes in on some of the new mortgage.
Jean and her friend or relative is left holding the bag. However, Jean is not guilt free in all of this, because she might have used fraudulent information to gain access to the new mortgage. As I have mentioned before, this is only one of the many forms of debt freedom relief scam around.
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