When homeowners face foreclosure, desperation can lead them into risky deals. One of the most dangerous is the “lease-back” trap—a scheme where you sign over your deed to an investor or company, then lease your home back with the promise of buying it again later.

It sounds like a lifeline. In reality, it’s a fast track to possibly losing your home permanently.

What Is a Lease-Back Scheme?

• You transfer ownership of your home to a third party.
• They promise you can “lease” the property and repurchase it later.
• Often marketed as foreclosure prevention or “mortgage rescue.”

Why Lease-Backs Don’t Work

1. Loss of Ownership – You’re asked to sign your deed over, often via a Quitclaim Deed, so they can “protect” the property. Once you sign over the deed, you no longer legally own your home.
2. Predatory Terms – Lease payments are often higher than your mortgage was.
3. No Guarantee of Buy-Back – The investor can sell the property or evict you at any time.
4. Scam Risk – Many lease-back offers are fraudulent, targeting vulnerable homeowners.

Legal & Financial Consequences

• You may face eviction despite paying rent.
• Your credit may continue to suffer from foreclosure proceedings.
• You lose equity built in your home.
• In some states, lease-back scams are prosecuted as fraud.

Safer Alternatives to Prevent Foreclosure

Instead of risky schemes, UCMA recommends:

• Loan Modification – Adjusting your mortgage terms to possibly lower payments and bring your mortgage current.
• Repayment Plans – An amount added to your regular mortgage payment for 3-12 months to help bring your mortgage current.
• Forbearance Plans – Temporary relief while you recover financially.
• Professional Counseling – Work with trusted foreclosure prevention experts.

Conclusion

The lease-back trap preys on fear and desperation. Signing over your deed won’t save your home—it will cost you it.

At UCMA, we help homeowners explore legitimate foreclosure prevention strategies that protect both your home and your future.

Call 1-800-474-1407 for your Free Foreclosure Prevention Consultation – Contact UCMA or Apply Online. Trusted by Thousands Since 1997.