Beware of Foreclosure Rescue Scams!

Remember… True Help is Always FREE.

Foreclosure rescue and loan modification scams continue to be a growing problem throughout the country. If facing foreclosure and the possibility of being forced out of your home, it can be extremely upsetting and can make majority of homeowners feel desperate.

These fraudulent foreclosure consultants will target homeowners who are behind on their mortgage payments and make promises they can’t keep, such as guaranteeing to “save” your home or lower your monthly mortgage payment, usually for some type of outlandish fee. They attempt to frighten you into believing your home is being foreclosed on in order to steal your money and could potentially cost a homeowner like yourself thousands and thousands of dollars – or even their home.

Scammers often offer help, take your money, and provide nothing to help you better your foreclosure situation and completely derail your financial future. There has been both licensed and unlicensed professionals accused of committing these types of scams. So, before agreeing to anything or paying any money to a party that attempts to contact you about foreclosure, make sure the request is legitimate.

If you’re struggling and facing a foreclosure, keep the following tips in mind:

Tip #1 Please beware of anyone seeking to charge you in advance for a loan modification service. In most cases, charging a fee in advance for a loan modification is illegal.

Tip #2 Only your lender can grant you a loan modification. Therefore, no third party can guarantee or pre-approve your loan modification application. Any person or organization that states otherwise is a scam.

Tip #3 Be cautious of individuals and companies using mail and/or phone solicitations that claim to be from your lender and insist that your payments be sent to an alternate contact or address that is different from the information on your mortgage statement.

Tip #4 Understand that paying a third party to assist with your application may not improve your likelihood of receiving a loan modification.

Beware of individuals or companies that asks for payment – in particular, avoid any person or business that:

• Pressures you to sign papers you haven’t had a chance to read thoroughly or that you don’t understand;
• Offers to buy your home for cash for much lower than the price of similar homes in your area;
• Offers money-back guarantees, insists you pay upfront and/or only asks for cashier’s check or wire transfer.

Here’s what you can do to avoid becoming a victim:

DON’T pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.

DON’T ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.

DON’T transfer title or sell your house to a “foreclosure rescuer.” Beware! This is a scam to convince homeowners they can stay in the home as renters and buy their home back later. It might also be part of a fraudulent bankruptcy filing. Either way, a scammer can then evict and take the home.

DON’T pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves.

NEVER sign any documents without reading them first. Many homeowners think that they are signing documents for a loan modification or for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership of their home to someone who is now trying to evict them.