When you are in financial distress and looking for help, you can be vulnerable to scams which in reality offer fraudulent relief to homeowners. Perhaps you feel like your bank won't listen to you or work with you, so when another company comes along and tells you they can step in and negotiate with your lender so that you don't lose your house, it sounds too good to be true. Which unfortunately, it is.
Scam Spotter
Your best defense against scams is to be aware of what they might look and sound like, because there IS legitimate help available. Be wary if:
- You are asked to pay an up front fee in exchange to getting a delinquent loan modified
- You are pressured to sign papers immediately
- You are told NOT to contact your lender or an attorney
- You are asked to sign your deed over to a third party (not your lender)
- You are asked to send your mortgage payment to any company other than your lender
No Guarantees
No company or individual can guarantee they can always save your home from foreclosure, or get you a loan modification regardless of your circumstances - so if someone tells you they can - you are probably talking to a con artist.
Stop and Think
Don't let anyone suggest that you should send them your mortgage payments while they are negotiating with your lender. If you do, the chances are extremely slim that the payments will actually be sent to your lender. If you are told that you "should not" contact your lender or an attorney, get suspicious.
Your lender has a lien on your property when you have a mortgage; your payments need to be sent where they tell you to send them - never do otherwise.
Signing Paperwork
Do not sign anything you don't 100% understand, or that you are told does not need to be shown to your attorney. You have the right to understand anything you sign and no one should ever stop you from having another attorney review important documents.
Beware of "rent to own" scams. There are scams out there where you are told to sign your house over to the company helping you and then you can rent back and maybe someday own it again. Not going to happen.
Get Legal Help
There are many reputable attorneys who can help you if you think you have found a way to "save" your house. Don't sign anything without having the paperwork checked by an attorney who represents your best interests. An attorney can review documents, help with lender negotiation, and suggest alternatives that may better suit your particular situation. It is hard enough to be struggling financially, protect yourself from becoming a victim of fraud.
