The possibility of losing your home to foreclosure can be terrifying. The reality that scam artists are preying on the vulnerability of desperate homeowners is equally frightening. Many so-called foreclosure rescue companies or foreclosure assistance firms claim they can help you save your home. Some are brazen enough to offer a money-back guarantee. Unfortunately, once most of these foreclosure fraudsters take your money, you lose your home, too.
You can save yourself money and more heartache by avoiding any business that:
* guarantees to stop the foreclosure process’ no matter what your circumstances
* advises you not to contact your lender, lawyer, or credit or housing counselor
* collects a fee before providing any services (it is illegal to collect upfront fees)
* accepts payment only by cashier’s check or wire transfer
* encourages you to lease your home so you can buy it back over time
* tells you to pay your mortgage payments directly to them, rather than your lender
* advises you to transfer your property deed or title to it
* offers to buy your house for cash at a fixed price lower than current comparables
* offers to fill out paperwork for you
* pressures you to sign papers you haven’t had a chance to read or that you don’t understand.
To Do:
Contact your lender or servicer immediately if you’re having trouble paying your mortgage or you have received a foreclosure notice. You may be able to negotiate a new repayment schedule. Lenders generally don’t want to foreclose; it costs them money.
Contact a credit counselor through the Homeownership Preservation Foundation (HPF), a nonprofit organization that operates a national 24/7 toll-free hotline (1.888.995.HOPE) with free, bilingual, personalized assistance to help homeowners avoid foreclosure. HPF is a member of the HOPE NOW Alliance of mortgage servicers, mortgage market participants and counselors. More information about HOPE NOW is at http://www.995hope.org/.
The Dept of Real Estate has made it Illegal for Loan Modification Companies, Attorneys to collect upfront monies to process a Loan Modification. Be very careful not fall prey to Loan Mod scams.