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Unsolicited
Contact
If you receive an unsolicited call or letter
promising help, verify that the person promising
help is actually from your lender or servicer.
Technically, only your lender or servicer has the
power to modify your loan. Scammers use public
records to find out the default status of
homeowners, and some of them pretend to be the
lender holding the lien. However, you can usually
verify if the offer for help is real by contacting
your lender's customer-service line.
Pretending to be From the
Government
We all
know that there have been several federally
sponsored loan modification and housing bailout
programs. However, these programs ask homeowners to
contact their lenders for help. If you receive
unsolicited contact from people who say they are
affiliated with the government, that's a warning
sign that it's a scammer trying to sound legitimate.
Great Promises
Con artists are usually very
good salesmen, and many of them promise that they
can get the homeowner out of trouble with certainty.
No one can guarantee that your home will be saved!
High Pressure
If
the nice promises do not work, some scammers go straight
for the vulnerability of those in trouble. For example,
they might ask a person if he or she really wants to
live on the streets. If you feeling pressured or
threatened by someone promising to help, it's a sign to
walk away.
Advance Fees
If a company asks you for a few
thousand dollars to start the process, it’s most
likely a scam. There are legitimate housing
counselors who charge fees for their services, but
consumers should make sure that they have actually
received the services before paying. Check with the
Division of Mortgage Lending to make sure they’re
registered, licensed and bonded.
Diverted Mortgage Payments
Some scammers
tell a troubled homeowner that they already
negotiated a lower mortgage with the lender and that
the homeowner should send the lower payment to the
scammers instead of the lender. Even though this
scheme is fairly easy to verify through the lender,
sometimes troubled homeowners do not figure out that
the lender is not receiving any money until months
later.
Suspicious Advice
Scammers often give advice
such as “stop talking to your lender” or “you are
not obligated to pay your loan”. They want the
troubled homeowner to talk to them only. Make sure
to communicate with your actual lender.
Property Transfer
Many scammers ask troubled
homeowners to sign over the property so that they
can make the mortgage payments. The fact is that the
scammers do not have to make mortgage payments on
the property, and often use the properties to
defraud lenders.
Power of Attorney
Some scammers ask troubled
homeowners to sign over power of attorney to another
person. This basically allows them to act on the
homeowner's behalf on many legal documents. Giving
away the power of attorney is actually worse than
signing away the home. |
