The latest foreclosure rescue fraud schemes that homeowners need to watch out for are mortgage loan audit scams. If you are facing foreclosure, you may be targeted by one of these foreclosure rescue scam companies. These fraudulent companies are looking for ways to collect upfront fees that most states have prohibited them doing in performing mortgage modifications and other foreclosure rescue services. The mortgage loan audits offered by these companies are performed by people who are not qualified or experienced to do loan audits, such as real estate agents, mortgage brokers, or loan processors, who use software that is not intended for loan audit purposes. Beware of false promises made by these crooks because all they will do is take your money. You could end up losing your home to foreclosure.
Value of a Forensic Loan Audit
Homeowners can avoid falling into the mortgage loan modification trap or becoming victims of mortgage loan audit scams by only hiring a foreclosure defense attorney who will perform the forensic loan audit for you. Homeowners should avoid doing business with companies that advertise with signs, Internet ads and newspaper advertisements that say they can negotiate with your lender to save your house from foreclosure and then ask you to pay them an upfront fee first. When you hire an attorney, you know that the attorney is qualified to conduct a loan audit, and you have a real opportunity to obtain results. It is legal for an attorney to ask for a retainer before performing loan audit services for you.
Real Solutions for Foreclosure Prevention
If you are about to default on your mortgage or already have missed several payments, you should contact your lender directly to explain your hardship and find out what options are available to you. If you are not comfortable negotiating with your lender, then you can have your attorney handle the negotiations for you. The most common alternatives available to homeowners are the following:
- Mortgage modification. Your lender modifies your existing mortgage by lowering your interest rate and extending your loan term so you can afford your mortgage payment.
- Reinstatement. You bring your loan arrearages current including any fees and costs.
- Forbearance. Your lender gives you a short term payment plan to catch up. After you are caught up, you go back to making your regular payment.
- Deed in Lieu of Foreclosure. You sign the deed over to your lender, and walk away owing the lender nothing.
- Short Sale. You sell your home for less than you owe your lender on your mortgage balance, subject to your lender’s approval, and walk away owing the lender nothing.
Lenders are willing to work with their borrowers to find a solution that is agreeable to both of you. They have enough foreclosure properties sitting on their books and are not looking for more. Foreclosures costs lenders time and money.
Hire an Attorney
It anyone approaches you about foreclosure rescue and asks for an upfront fee that is a sure sign that they are scam artists. To avoid being a victim of foreclosure rescue scams, it is recommended that you hire a foreclosure defense attorney to help you with solutions to save your home from foreclosure. The attorney is the only qualified person to conduct a mortgage loan audit.
