Remember that old adage, “if it sounds too good to be true, it probably is?” That’s exactly what homeowners facing foreclosure need to keep in mind.
Foreclosure rescue scams have become a major headache in the U.S. with companies claiming they can free homeowners from impending foreclosures – or even eliminate their mortgages entirely – for a fee. Trouble is, they aren’t legit.
One of the latest scams was peddled as a “securitization audit.” It promised to determine the true owner of a promissory note, supposedly giving homeowners court fodder to show that the party foreclosing on their homes wasn’t the actual note owner.
So please, please, please be careful. There are plenty of legitimate ways to get help, starting with the federal hotline 1-888-995 HOPE (4673). Here are some tips for avoiding scams, courtesy of the federal Making Home Affordable program.
- Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
- Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
- Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
- Never make a mortgage payment to anyone other than your mortgage company without their approval.
Does that help? If you have any questions, don’t hesitate to call.