There are many honest, qualified and
caring professionals who are trying to
help the millions of American homeowners
who are struggling with their mortgages
and at risk of losing their homes. And
they’re very easy to find. (More on that
in a minute.)
Unfortunately, there are also hundreds —
probably thousands — of unbelievably
sleazy con artists who are posing as
legitimate housing counselors and
inflicting even more pain and suffering
among homeowners already in financial
distress.
The
first round of mortgage fraud — the
mid-decade wave of rogue lending that
arguably got us into this mess in the
first place — has now been replaced by a
second, even more despicable scam called
“foreclosure rescue.” These folks often
refer to themselves (not completely
erroneously) as “foreclosure
specialists.” What they specialize in is
ripping off people who are desperate for
help at one of the most vulnerable
points in their lives.
Part of
the problem is that the victims of this
scam are such easy targets. Once you get
in trouble with a mortgage, it becomes a
matter of public record — even at the
earliest “pre-foreclosure” stages. To
get started on this fraud, all it takes
is a trip to the local town or county
clerk’s office to compile a fresh list
of potential victims. Many states make
life even easier for the scammers by
requiring lenders to publish foreclosure
notices in the newspaper.
There
are variations on the “rescue” scam, but
you should be aware of the common
elements and red flags. The first is the
demand for a large, up-front fee
connected to sweeping promises to
resolve your mortgage trouble in short
order. This is the “if it sounds too
good to be true” red flag.
The next
warning sign is any “solution” that
involves you signing over the deed to
your house. There are several very
plausible scenarios scammers use to sell
homeowners on this idea, but no
legitimate housing counselor will ever
suggest you do so. Ditto for
instructions to make mortgage payments
directly to the counselor. Or offers to
buy your house and rent it back to you.
Or advice to not contact your lender or
lawyer and work only through the
mortgage counselor.
If you
hear any one of these statements,
promptly stand up and leave — or hang up
and don’t call back. No “Thanks for your
time” is required on your part.
To
contact a legitimate counselor, visit
http://foreclosurehelp.nv.gov/HousingCounselors.htm
to find an accredited agency near you.
You can also get a referral from the
National Foundation for Credit
Counseling, a nationwide network of
local counseling agencies that help
people with a broad range of consumer
lending issues. Most homeowners who get
in trouble with a mortgage also have
other credit problems. A qualified
credit counselor can help you with
those, too.
If
you’re having trouble, there’s no need
to wait to find a good counselor to get
started.
Contact your lender as soon as you
think you may need help. If you’re
behind, don’t ignore your lender’s
letters or calls; the longer you wait,
the harder it will be to get your loan
modified.
But
there are no guarantees. Despite the
government’s recent commitment of $75
billion to promote loan modifications,
the program is voluntary. If a lender
modifies a loan to a more affordable
monthly payment, they get paid a
government bonus. But there’s no
requirement that they do so.
Source: reprinted from MSNBC (http://www.msnbc.msn.com/id/30141851/
)
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