With such a large market of people in need of assistance, scam artists take the opportunity to attack at full speed. Unfortunately, it’s the homeowners that are in dire need of help that usually fall for these scams. For this reason, we urge you to be particularly aware of anyone trying to sell you on ways of clearing your foreclosure.
The scam artists usually get the attention of unsuspecting homeowners by promising to relieve the mortgage debt for a fee. Sometimes they’ll use the pitch of a “guaranteed modification,” or something along those lines. One thing that we can make very clear is that only your lender or servicer can approve a loan modification, they will only do so after the application has been thoroughly reviewed by the bank and the trial payment period has been completed.
The most common question regarding scams, that we receive is, how to identify a mortgage loan modification a scam:
- If they ask for all fees upfront
- If they make any promises that sound too good to be true
- If they are not in any way related to your mortgage lender
- If they ask you to change who you make your payments to
- If they ask you to sign over your title
The general rule of thumb is, if there is any doubt in your mind that the offer they are making is legitimate, do not sign any documents and do not make any payments.
How to research any offers received:
If you receive a tempting offer and would like to do your research, start by going to trusted sources. Contact your bank directly and speak with the remediation department. They would be the first that could confirm if they work with the company providing the offer.
If you believe the offer received is a scam, the next course of action is to call the Consumer Financial Protection Bureau at 1-855-411-CFPB (2372), to report the company guilty of fraud. Complaints can also be filed online through the CFPB website.
If you have any questions about offers for loan modifications or other remediation programs, we welcome you to bring the documents to your free consultation. Our attorneys will gladly review the paperwork and provide advice on how to proceed.