 
With fears about the credit crisis and uncertainty plaguing the economy, more and more Americans are feeling a financial pinch. Some homeowners are having difficulty making payments on their homes and are looking for help to meet their mortgage commitments. Unfortunately, there are scam artists looking to take advantage of homeowners’ vulnerability. If you find yourself in a tight situation, you should be aware of the signs that could help you identify which companies are fraudulent and which are legitimate.
Scammers will often tailor their schemes to your particular situation, so be very cautious about from who you seek help to avoid falling victim to a foreclosure rescue scheme.
Some things to watch out for include:
- Being approached with an unsolicited mortgage rescue offer.
- Receiving any unsolicited correspondence, phone calls, or advertising that claims to help you save your home.
- Never participate in any complicated deal that you do not fully understand.
- Never sign any incomplete documents or that contain false statements, including documents that claim you make more money than you actually do. No matter what you are told, this is never okay, and there could be legal repercussions for signing a document that contains false statements.
But there is help available. If you are having difficulty paying your mortgage, contact the HOPE National Helpline at 888-995-HOPE for debt counseling. The U.S. Department of Housing and Urban Development has some resources as well to help you find some trustworthy assistance options.
2 Comments on "Outsmart Scammers: Avoid Falling Victim To A Foreclosure Rescue Scheme"
Tammy Ewing
is there a list of legit companies My mother has been dealing with someone right now. who just got her a loan motification. how do I find out if this is legit.
Travis Wallis
Loan Modifications are usually a legitimate process. However they are a negotiation between the homeowner and the bank that holds the note on the property. Hiring someone to middleman that process can be usefull since the terminology and processes involved are somewhat complicated for most folks. Just be sure that you are not paying them too much for the service. In a recent industry training on loan miodifications we were taght that between $500-$1800 is alright for the work involved. But do not pay for something unless the modification is succesful. Also be careful that the modification is something that will truly “work” in the long run, since banks will not do a second modification.
The basics are simple, the borrower shows their true monthly costs to the bank including things like gas expenses, haircuts, monthly bills etc. The borrower or modifier then tries to determine the maximum payment that the borrower can afford based on their steady income.
The Bank then either reduces the amount owed on the house, or the interest rate, or both. If they believe that it is in their best interest to do so.
Also make sure that the person doing the modification is using legal counsel to make sure that the borrowers rights under RESPA and TILA are being upheld.
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