My Loans Consolidated

It is sad to see how people would just prey on their fellow countrymen and take advantage of today’s economy where a lot of people are striving to remain in their homes, struggling to be able to pay off their mortgage. Currently, mortgage loan modification frauds are rising in the US. Foreclosure scams use phone calls, direct mail, the Internet and even door-to-door visitation in order to get their victim attracted to their offer. Their prime target are those who are at the verge of losing their homes.

You would easily be attracted to what they offer: interest rate reduction, missed mortgage payments forgiveness, debt elimination. After making such offers, scammers would then ask you to pay a huge amount of fees upfront. These fees are supposedly used for arranging a loan modification or a mortgage refinance.

What people should know however is that whoever has fallen behind on their mortgage payments, legitimate housing counselors and other resources are available at low cost to help you. There are even resources that would help you out for free. If those foreclosure companies negotiating with you are legitimate, you shouldn’t have to pay hundreds of dollars for assistance – let alone thousands of dollars.

If you need a counselor to help you save your home, make sure that you only work with a nonprofit one which is approved by the US Departmment of Housing and Urban Development. You can easily contact them here at 877-HUD-1515 (877-483-1515) to get a list of certified counselors. If you can not find the name of the company you are talking to, you might stay away from them and switch to an organization in the list.

Here are a few characteristics that you will find in foreclosure scammers:

• Usually scam artists offer a quick-fix which sounds too good to be true. They will then give you a price in return for the quick-fix.
• Scammers are usually very aggressive in contacting you. Most legitimate companies would usually work on people that come their way, and would not be out there looking for them. Scammers read foreclosure listings and then they contact desperate homeowners to see if they can make money out of them. If they are too enthusiastic in helping you out to keep your home, ask yourself, “What would be in it for them?”
• Scam counselors have a way to pressure you into signing something that you haven’t even read or understood. If people are trying to distract your attention from trying to read and understand what you are about to sign, be aware.
• There are companies who say that they want to buy your home and let you rent it back so you can stay in your home. The rent cost will be excessive and the buy-back price will be 50% higher than the sale price.
• Other scams involves changing your loan terms in return for a big payment in advance and stop paying your lender. You should be alerted only by the fact that they would even suggest not paying your lender. They would probably tell you that they will take care of the rest of the mortgage, but this is exactly when it is time for you to check if they are even listed in the HUD and have the authority to do so in the first place.
• Loan modification services never ask you to pay the fees in advance. If somebody asks you to do so, be aware.

If you are reading this article and recognise that you have been a victim of foreclosure fraud, immediately ask for help. Find out your state and local consumer protection agencies and report the people that have scammed you. You can find their contact in the Consumer Action Website.

Popularity: 1% [?]