Skip to main content

How homeowners can avoid mortgage relief scams



Homeowners who are facing financial difficulty are often targeted by mortgage relief scams. These scams can be very convincing, and homeowners may be desperate for help, making them vulnerable to these schemes.

Scammers often pose as government officials or mortgage experts, and they may promise homeowners that they can help them avoid foreclosure or modify their mortgage loan. However, these promises are often false, and homeowners who fall victim to these scams may lose their homes and their money.

If you are facing financial difficulty and you are considering a mortgage relief program, it is important to do your research and be very careful. Here are some tips to help you avoid becoming a victim of a mortgage relief scam:

  • Only work with a HUD-approved housing counselor. You can find a housing counselor by calling 1-888-995-HOPE (4673).
  • Be wary of anyone who promises to help you avoid foreclosure or modify your mortgage loan for a fee. It is illegal for anyone other than a licensed attorney to charge a homeowner a pre-paid fee to negotiate a mortgage modification on the homeowner's behalf.
  • Read all paperwork carefully before signing anything. Do not sign anything that you do not understand.
  • Do not be pressured into making a decision quickly. Take your time and do your research before making any decisions about your mortgage.

The warning signs for fraudulent mortgage rescue schemes:

  • You are charged an upfront fee for assistance in avoiding foreclosure or modifying your mortgage loan.
  • You are asked to transfer the deed to your home. It is very unlikely you will ever get the deed back, regardless of what you are told.
  • The individual or company "helping" you asks you to make future mortgage payments directly to them, instead of paying your mortgage company directly. This is a common tactic used by scammers to take your money and run.
  • You are asked not to contact your current mortgage company. This is another common tactic used by scammers to prevent you from getting help from a legitimate source.
  • The scammer refuses to provide you with a written plan or contract, or alternatively pressures you to quickly sign documents you do not understand. This is a red flag that the scammer is not interested in helping you, but rather is trying to take advantage of you.

Review this HUD guide for homeowners having difficulty making mortgage payments. This guide provides information on your rights and options if you are facing foreclosure.

If you think you may have been a victim of a mortgage relief scam, you should contact your state attorney general's office or the Federal Trade Commission (FTC). You can also file a complaint with the FTC online at ftc.gov/complaint.

It is important to be aware of the red flags for fraudulent mortgage rescue schemes. If you are contacted by someone who claims to be able to help you avoid foreclosure or modify your mortgage loan, be sure to do your research and ask questions before you hand over any money.

Comments

Post a Comment

Popular posts from this blog

Building a Case for Homeownership Today!

Over the last 60 years, the average sales price of homes has appreciated at a rate of 5.56% annually, according to the Federal Reserve Economic Data . During the same period, rent has increased at a rate of 3.88% annually which presents a compelling argument in favor of homeownership. When the figures are analyzed, it becomes evident that homes have not only appreciated in value at a faster rate than the increase in rental costs, but they have also provided homeowners hedge against inflation and a substantial asset that builds equity over time. In the report called "Building a Case for Homeownership Today!", the reader will discover the real cost of homeownership is most likely less than they are paying in rent because of the two powerful dynamics of amortization and appreciation that are not currently working in their favor.   As they continue to rent, the dynamics work in favor of their landlord. The median homeowner has a net worth of $396,000 compared t...
Post a Comment
Read more

Home selling strategies for downsizing seniors

Downsizing can be a significant life transition for any age person, but especially for seniors who may have lived in this last home for some time. Follow these suggestions to make the downsizing process smoother and less stressful. Start Early: Begin the downsizing process well in advance of your planned move. Give yourself plenty of time to make decisions and avoid feeling rushed. Assess Your Needs: Evaluate your current and future needs in terms of space, accessibility, and location. Consider factors like health, mobility, and proximity to family and healthcare facilities. Create a Plan: Develop a comprehensive downsizing plan that outlines your goals, priorities, and a timeline for each task. Having a plan will keep you organized and focused. Declutter: Go through your belongings room by room and decide what to keep, donate, sell, or discard. Be realistic about what you truly need and use regularly. Seek Professional Help: Consider hiring a professional organizer, downsizing...
Post a Comment
Read more

Discovering Tax Credits That Enhance Homeowner Benefits

Owning a home not only provides a sense of stability and pride but also opens doors to potential tax benefits. As a homeowner, understanding tax credits can significantly impact your financial well-being. Let's delve into some key tax credits and deductions available to homeowners and how they can help you maximize savings. If you've made energy-efficient improvements to your home in the past year, you may qualify for the Residential Energy Efficiency Property Credit. This credit allows you to claim a percentage of the cost of qualifying energy-efficient upgrades, such as solar panels, energy-efficient windows, and HVAC systems, up to certain limits. Not only do these upgrades help lower your utility bills, but they also contribute to a more sustainable future while providing tax savings. Another valuable tax credit available to homeowners is the Residential Renewable Energy Tax Credit. This credit applies to the installation of renewable energy systems, such as sol...
Post a Comment
Read more