Con artists adapt to savvy public
The FBI and the general public are aware of several mortgage aid scams that con artists tried to conduct during the beginning of the housing crisis. The White House posts warnings against many of these at makinghomeaffordable.gov, the federal Foreclosure Prevention Plan Web site.
But, of course, the scams are taking new forms every day as con artists try to adapt. Here are some warning signs to watch for.
Yes, you should talk to your lawyer
If a company or individual advises you to not talk to your lawyer or your lender, they are likely trying to swindle you. This might sound like common sense, but these scammers can be pretty crafty when coming up with explanations and excuses for why you shouldn’t talk to your lawyer or lender. The more people you involve, the less likely the scammer is to get away with a scheme.
Unfounded guarantees
As you will learn if you visit makinghomeaffordable.gov, there is absolutely no way to guarantee that you won’t lose your home. The government doesn’t guarantee it, your bank doesn’t guarantee it and your mortgage aid company shouldn’t either. If someone tells you he or she can guarantee a stop to a foreclosure procedure, that person is lying.
Always pay the bank
If an alleged mortgage aid specialist says you should start making the checks out to him instead of to your bank, he is a fraud. If you get your home refinanced or your loan modified, it does not change who you owe money to. Also, if a person will only accept payment by wire transfer cashier’s check, that is the sign of a defrauder.
Review
Previous scams I’ve covered on the money blog have warned against paying a fee for mortgage aid up front. You should also never let someone else fill out your loan modification paperwork for you or pressure you into signing papers that you haven’t read. Also, do not accept an offer to let you rent or lease your house and buy it back later. Never hand over the deed to your home.
Thanks for the information..good to have these types of reminder.