April 7, 2009
Beware of Mortgage Foreclosure Rescue Scams! - Help is FREE!!!
Warnings have been issued by the Federal Trade Commission that scam artists are preying on vulnerable homeowners who are facing the possibility of foreclosure.
So-called foreclosure rescue companies or foreclosures assistance firms claim they can help you save your home. Some even offer a money-back guarantee. Their goal is to make a quick profit through "fees" or mortgage payments they collect directly from you, but do not pass on to your mortgage lender. Sometimes they even assume ownership of your home by deceiving you!
If you or someone you know needs assistance with a possible foreclosure, avoid any business that:
- asks for fees, or any money at all up front
- guarantees to stop the foreclosure process
- instructs you not to contact your lender, lawyer, or credit counselor
- encourages you to lease the home to them and then "buy it back"
- tells you to make your mortgage payments directly to them rather than your lender
- tells you to transfer your property title to them
- offers to buy your home for a fixed price that is not supported by the current market
- offers to complete paperwork for you
- pressures you to sign documents even if you don't understand them
For assistance with your mortgage you should contact your lender directly or a Housing and Urban Development (HUD) housing counselor at 1-888-995-HOPE (4673).
The Office of Thrift Supervision has also published a comprehensive guide to protecting yourself from becoming a victim of foreclosure rescue fraud.
If you believe you or someone you know is being victimized or has been victimized by a foreclosure rescue scam, immediately contact the Federal Trade Commission (FTC) at 1-877-382-4357 to report it!
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