Foreclosure Relief Scams On the rise

For the most part everyone knows by now, the numbers of home owners going through foreclosure are growing. Many home owners are having issues making their loan payments and are a skipped payment or two from a notice of default.

Many individuals will check out any solution to try and save their home from foreclosure. This opens the door to scammers. The reality is, mortgage modification and foreclosure relief ripoffs are sprouting up all over the place. As a homeowner you need to know that they are out there and what to check for in order to steer clear of them. A scammer will not only cost you money but can cost you precious time that you could use to save your home or prepare to move. You need dependable information on foreclosure or the short sale process in a timely manner.

A number of the ads you’ll notice will claim that they can protect your house from foreclosure or lower your mortgage payment to an easily affordable level. Additionally they claim that they’re associated with a government plan or have a direct line to your mortgage company. They don’t.  Obviously, there are honest businesses out there that legitimately try to help homeowners yet, unfortunately, there exists a large number which are merely scams.

Scammers are fairly easy to spot simply because they typically require money in advance. But, they have many other tactics as well. Check for these clues:

1. Someone who asks for money at the start before they actually do anything. Several states have recently passed laws regulating money paid upfront for mortgage modification or foreclosure assistance. The most effective rule of thumb is usually to not pay for anything in advance.

2. The scammers have methods for tracking down homeowners that have missed payments or have their properties scheduled for auction. They then focus on these homeowners recognizing that they are more vulnerable since they are in a troubled circumstance. If you are one of these homeowners be extra alert in any dealings you have with foreclosure rescue or mortgage modification companies.

3. Some scammers will try to get you to sign the deed to your house to them saying they will make the payment on your home. They will not.

4. You shouldn’t make a mortgage payment to anybody aside from your lender. More than likely, you’ll not see that money again and neither will your lender.

5. Be aware of the phrasing of certain ads which make it sound as though they work directly with a government bailout program. They in all likelihood don’t. They more than likely simply want to make you another high fee, high interest consolidation loan that may only buy you a little time at great expense.

Ok, so what if you’ve already been scammed? Well, you possibly can report the matter to the Federal Trade Commission (FTC). They have a web-based complaint assistant and also have a hotline at 1-877-FTC-HELP. You can also find good information regarding foreclosure or short sale consequences online.

There is also the NeighborWorks America group that educates the general public about loan modification scams. The easiest method to keep clear of these scams is to educate yourself on the various kinds of scams and be very wary of any individual offering to help modify your loan or save your house from foreclosure.

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