How Unsuspecting Homeowners Get Scammed
Your Better Business Bureau wants you to be informed and protected against loan modification scammers with this information provided by Marietta Rodriguez, National Director of Homeownership and Lending, NeighborWorks America:
Are you more likely to use a service recommended by a friend? Loan modification scammers bet you are. Word-of-mouth from friends or family is one way they connect with unsuspecting homeowners. If you’re a homeowner in the market for a loan modification, here are six signs you may be dealing with a scam artist:
1. A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.
2. A company/person guarantees they can stop a foreclosure on your home or facilitate a loan modification.
3. A company/person advises you to stop paying your mortgage company and pay them instead.
4. A company pressures you to sign over the deed to your home or sign any paperwork that you haven’t had a chance to read, and you don’t fully understand.
5. A company claims to offer “government-approved” or “official government” loan modifications.
6. A company/person you don’t know asks you to release personal financial information online or over the phone.
So who’s there working on your behalf? If you need a loan modification, seek help from: 1) your lender and 2) a HUD-approved counseling agency. Both provide free assistance to homeowners in all income ranges. Now there’s a tip you can pass on to your friends!
For answers to homeowners’ top questions, watch these videos. And if you’re in need of help, call 888-995-HOPE (4673) or visit http://www.LoanScamAlert.org.
Additional information can be found at www.foreclosuredetroit.org, www.fightmortgageforeclosurefinsc.com/, or www.greenpath.com/.