Some homeowners are unnecessarily losing their homes because they thought they were getting help in avoiding foreclosure but ended up being the victim of a scam.
The Federal Trade Commission suggests that homeowners who are in financial trouble and looking for help should avoid any business that:
- Guarantees to stop the foreclosure process — no matter what your circumstances
- Instructs you not to contact your lender, lawyer or credit housing counselor
- Collects a fee before providing you with any services
- 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 make your mortgage payments directly to it, rather than your lender
- Tells you to transfer your property deed or title to it
- Offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale
- Offers to fill out paperwork for you
- Pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.
For more information about foreclosure scams, CLICK HERE.
To read a copy of the FTC’s pamphlet, “Mortgage payments sending you reeling? Here’s what to do” CLICK HERE.
Other foreclosure news…
- The man who caused 10 foreclosures
- Banks offer 28% discount to O.C. foreclosure shoppers
- O.C. bank-owned properties rise 37%
- Homebuilder warns foreclosure shoppers
- O.C. early foreclosure notices drop for second month
- Anaheim company sues Ed McMahon over mortgage
- Long Beach congresswoman can get foreclosed house back
- Mapping foreclosures in O.C.
- Foreclosure threat spreads in O.C.
- Nearly 80% of Calif. homeowners lose home after first warning from bank
i would think that you can also do it yourself. in fact, many of these companies offering help for mortgage stressed families don’t know all the details you know. You can talk directly to your lender and ask to negotiate a deal. You will surprise that many lenders are open to this sort of offer.
Dear Sir.
I live in Orlando Florida and needed to have a loan modification done on my mortgage.
Looking on the internet I found this company that said they could do it for me for $1000. dollars with $250.00 up front.
So I did it.
After about 6 or 7 weeks with no up date on my case I called them up.
They told me that countrywide was giving them a heard time , that’s when I knew something was funny because countrywide has nothing to do with my loan, my loan is with EMC.
I’ve called and e-mail them a great number of times to cancel the LM and get my money back or at lease part of it, but now they never call back or e-mail me.
This company is stealing the money from people that can’t afford to lose anymore,they need to be closed up they are running a scam.
Homeowners can get most of the information they need to save a house online or through community groups. Lenders have so many foreclosures to deal with right now that involving third party companies in a large number of the cases does nothing but creates additional complexity.
If borrowers suspect predatory lending or other violations of law, then they should consult with an attorney who specializes in federal and state lending laws. Otherwise, they can get the information from various sources to negotiate with a mortgage company on their own.
It’s best to hire someone to do loss mitigation work only if the borrowers don’t want to, don’t have the time, and are willing to take the risk that nothing will come of the help. Too many scams have already been shut down, but new ones open up every day to take advantage of those in desperate situations.
Yup, these kind of offers are very much common these days…
Thanks anyway for sharing this wonderful information…
Good article. Sadly, many seeking to halt foreclosure or get a loan workout in Orange County often get victimized. There ARE legit sources of info out there. I would start at http://www.hud.gov or read the articles at http://www.socalforeclosurehelp.com