Browse > Home / Housing, News / Beware of foreclosure rescue scams

Beware of foreclosure rescue scams

March 18, 2009

Any time the economy is bad, it opens the door even wider for shady businesses, scams and fraud.

Unfortunately, it’s no different during the current housing crisis. With the news of government help for homeowners, there are plenty of people who are ready and willing to take advantage of people who are in a vulnerable position.

Here are a few things that should raise a red flag when dealing with a company that is promising to help you with your mortgage:

·        The company solicits your business. Be wary of any company that initiates contact with you if you haven’t already contacted the company first.

·        The company offers to find out who your mortgage loan holder is … for a fee. You can find out who holds your loan for free. Fannie May and Freddie Mac have web sites to help you obtain this information. (www.fanniemae.com/homeaffordable) (www.freddiemac.com/avoidforeclosure)

·        The company is charging upfront fees and/or high fees. Reputable housing counseling agencies offer their services at no charge or for a minimal charge.

The Federal Reserve has also published a list of tips to help you avoid a foreclosure scam. You can find the list here.

The best place to go for help is to a non-profit credit counseling agency that is also approved by the U.S. Department of Housing and Urban Development to offer housing counseling.  Advantage Credit Counseling Service is a HUD-approved housing counseling agency that can work with consumers in Pennsylvania, California, Florida, New York and

Ohio.

If you do not live in one of those states, you can find an approved agency in your area at www.hud.gov.

These agencies offer housing counseling at no cost and can direct you to other reputable services in your area.

Also, before you do business with any company check their rating with the Better Business Bureau (www.bbb.org). And read all paperwork before you sign anything. Do not give out any personal information – like your Social Security number or bank account information – unless you are absolutely certain of who you are dealing with.

Share and Enjoy:
  • Digg
  • del.icio.us
  • Technorati
  • Reddit
  • Furl
  • Netscape

Written by admin · Filed Under Housing, News 

Comments

Terms of Service
1. All comments are subject to review by Advantage Credit Counseling Service prior to their publication on this site. Advantage CCS reserves the right to decline publication to any post it deems in violation of the Terms of Service.
2. No potentially libelous or damaging statements will be posted. This includes negative and / or unsubstantiated allegations against Advantage CCS and its competitors.
3. No comments including obscene, explicit or racist language will be posted.
4. Comments containing personal attacks, insults or threats will not be posted.
5. Comments not related to matters of personal finance, budgeting, credit counseling, housing counseling, bankruptcy and other related financial issues will not be posted.
6. Anyone who posts using another person’s identity will be barred from posting in the future.