Scammers pretend to help those facing foreclosure
May 29, 2008
Homeowners who are facing foreclosure have become vulnerable targets for scammers.
According this May 23 article on Forbes.com, delinquent homeowners are getting tricked by brokers who promise to save them from foreclosure, but ultimately make of with thousands of dollars in fees or what home equity was left.
If you, or anyone you know, is facing financial difficulties and is in danger of losing his or her home, please make sure you know what kind of a company you are dealing with before you sign anything.
Surely you’ve heard the saying, “An ounce of cure is worth a pound of prevention.” This is one of those times where that saying definitely has meaning. There are some easy steps you can take to ensure you are dealing with a reliable company.
Research the company. Check their web site and any brochures or information they can offer. Ask questions. Ask for references from other customers who have used the company’s service. If they seem to avoid giving specific answers or references, you may want to reconsider doing business with that company.
Make sure you get all the paperwork involved with your potential transaction. Read all of the fine print and ask questions about anything you do not fully understand. Do not be afraid to ask questions. And do not sign anything that you don’t understand.
Check the company with the Better Business Bureau and your state Attorney General’s office. See if there are any complaints against the company and if, or how, those complaints were resolved.
Also, check with HUD, the U.S. Department of Housing and Urban Development, which can direct you to reliable, HUD-approved agencies in your area that offer housing counseling. You can also call HUD to find an agency at (800) 569-4287.
Rely on your gut instinct. Remember the old adage of, “If it seems too good to be true, it probably is.” If something feels wrong to you or seems too easy, take a step back and reassess your situation.
Remember there are reliable companies that can help you with your housing situation. Non-profit agencies like Advantage CCS (which happens to be HUD-approved) offer free housing counseling, including loss mitigation, for those who are facing foreclosure.
One other thing that I want to stress: It’s never too soon to get help. If you find yourself struggling to make your mortgage payments, don’t wait until you’re receiving foreclosure notices to call for help. Call for help at the first sign of a problem. Don’t ignore the problem, and don’t ignore paperwork from your lenders.
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