February 24, 2019

MORTGAGE FORECLOSURE SCAM

The possibility of losing a home to foreclosure can be terrifying. An offer of help may be very inviting. But the Federal Trade Commission warns that scam artists are preying on desperate homeowners. Many scammers say they can get a loan that will reduce your monthly mortgage payment, or take other steps to save your home.

Unfortunately, many scammers use half-truths and even outright lies to sell their services. They promise relief, but don’t deliver. In fact, many leave their homeowner victims in worse financial shape.

The Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know that there is a rule in place to protect homeowners. The Mortgage Assistance Relief Services (MARS) Rule makes it illegal for anyone to collect any money until a homeowner has actually received an offer of relief from his or her lender and accepted it. That means even if you agree to have anyone help you, you don’t have to pay until it gets you the result you want.

How the Scams Work:

Fraudsters use simple, but deceptive messages tactics to find homeowners in distress. Some sift through public foreclosure notices in newspapers and on the internet or through public files at local government offices, and then send personalized letters to homeowners. Others take a broader approach through ads on the internet, on television or radio, or in newspapers, posters on telephone poles, median strips, and at bus stops, or flyers, business cards, or people at your front door.

Warning Signs:

If you’re looking for a loan modification or other help to save your home, avoid any entity that:

*guarantees to get you a loan modification or stop the foreclosure process – no matter what your circumstances;

*tells you not to contact your lender, lawyer, or housing counselor;

*claims that all or most of its customers get loan modifications or mortgage relief;

*asks for an upfront fee before providing you with any services (unless it’s a lawyer you’ve checked out thoroughly);

*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 for much lower than the selling price of similar houses in your neighborhood; or

*pressures you to sign papers you haven’t had a chance to read thoroughly or that you don’t understand.

If you have been a victim of a scammer, or contacted by a scammer, the Federal Trade Commission requests you to report it to http://www.ftc.gov.