Avoid Mortgage Scams
The idea of losing your home to foreclosure or short sale can be frightening. Not being able to pay the mortgage can drive some to take desperate actions. During these times, there are programs available through various mortgage companies that can provide temporary help. Unfortunately, however, there are also many individuals out there that are scamming people instead of helping. Knowing what signs to look for can be the difference between saving your home and losing everything.
There are many different tactics that these scammers will use to swindle people out of their home and thousands of dollars. Many will go straight to the source, searching out homes that are in foreclosure in various areas and sending out personal flyers straight to them, saying things like "Stop foreclosure now!" and "100% Money Back Guarantee!" Receiving something in the mail from a company that you do not recognize and have never done business with is a clue to have your antennas up.
These phony counselors will often say that they are able to negotiate special deals with mortgage companies for a small fee. Essentially they are saying that they can be the middleman in the situation and advocate for you. Some of them will request that you start making your mortgage payments directly to them and they will help you get back on track. Unfortunately, they are taking your money and running, leaving you in the dust.
Another common scam is the bait-and-switch scam. This type of fraud involves a con artist giving you papers, claiming that you need to sign them to get another loan to make your mortgage current. These individuals usually say they are working with the banks or mortgage companies that you deal with to help you get current. Unfortunately, underneath the mumbo-jumbo and fine print is a document that surrenders the title of your house to the scammers in exchange for a "rescue" loan. With your signature all over the documents, attorneys have a hard time getting back what should be yours.
Being careful and cautious when someone is approaching you saying they can make all your problems go away is extremely important. Working directly with certified mortgage companies or the bank that you do business with is usually the best route for success. No one wants to be subject to a scam or lose money to a fraudster, so always make sure to read the fine print and be constantly aware. Being cautious is always better than losing your home.
There are many different tactics that these scammers will use to swindle people out of their home and thousands of dollars. Many will go straight to the source, searching out homes that are in foreclosure in various areas and sending out personal flyers straight to them, saying things like "Stop foreclosure now!" and "100% Money Back Guarantee!" Receiving something in the mail from a company that you do not recognize and have never done business with is a clue to have your antennas up.
These phony counselors will often say that they are able to negotiate special deals with mortgage companies for a small fee. Essentially they are saying that they can be the middleman in the situation and advocate for you. Some of them will request that you start making your mortgage payments directly to them and they will help you get back on track. Unfortunately, they are taking your money and running, leaving you in the dust.
Another common scam is the bait-and-switch scam. This type of fraud involves a con artist giving you papers, claiming that you need to sign them to get another loan to make your mortgage current. These individuals usually say they are working with the banks or mortgage companies that you deal with to help you get current. Unfortunately, underneath the mumbo-jumbo and fine print is a document that surrenders the title of your house to the scammers in exchange for a "rescue" loan. With your signature all over the documents, attorneys have a hard time getting back what should be yours.
Being careful and cautious when someone is approaching you saying they can make all your problems go away is extremely important. Working directly with certified mortgage companies or the bank that you do business with is usually the best route for success. No one wants to be subject to a scam or lose money to a fraudster, so always make sure to read the fine print and be constantly aware. Being cautious is always better than losing your home.
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