Foreclosure Scams – 6 Ways to Stay Away!
Information about your (or your friend, family, co-worker’s) for
eclosure is publicly available. That means that anyone can look at your name, address, and other sensitive information. What this means is that you are the bull’s eye for mortgage loan scammers that want to take advantage of your situation.
The big question is, what happens if you think that you are a victim of a scam?
There is a point of contact if you think that you might be a victim. Homeowner’s HOPE Hotline partnered with HUD, NeighborWorks America, Fannie Mae, and Freddie Mac can be reached at 1-888-995-HOPE.
This is an independent national nonprofit dedicated to helping distressed homeowners navigate financial challenges and avoid mortgage foreclosure. Through its hotline there is comprehensive homeowner education and foreclosure prevention counseling for free, 24 hours a day, 7 days a week 365 days a year in over 170 languages. Since 2007, HOPE has served over four million distressed homeowners, an average of 5,500 people each business day.
By calling the HOPE Hotline local, state, and federal agencies can start to shut down unscrupulous organizations.
Scams aren’t always easy to spot, but it helps if you know what to look for. Here are 6 Ways to Stay Away from a Foreclosure Scam:
1. A company/person asks for a fee prior to working with your lender to do a loan modification. Time after time I have heard of acquaintances who never heard much back from these companies after pocketing the money.
2. A company/person guarantees they can stop a foreclosure or get your loan modified. NO ONE can make this guarantee as up and down as the banks are these days.
3. A company/person advises you to stop paying your mortgage company and pay them instead. Despite what a scammer will tell you, you never send a mortgage payment to someone other than your lender. Go directly to HOPE before doing anything.
4. A company asks you to sign over the deed to your home or sign any paperwork that you haven’t read. Don’t sign over the deed to your house to anyone! No matter how scared you are about the payments.
5. The newest lingo is “government-approved” or “official government” loan modifications. These may be scam artists pretending to be legitimate organizations affiliated witht he government. Check to be sure by contacting your lender or calling the HOPE Hotline at 1-888-995-HOPE.
6. A company or person asks you to release personal financial information. Just to be on the safe side, check with HOPE 1-888-995-HOPE.
Don’t be the target of a scam, help stop these organizations, visit www.995hope.org
