Don’t Be a Foreclosure Scam Victim
It is bad enough to be the target of a foreclosure from a legitimate lender. How much worse to be the target of a scam seeking to steal what little you have while posing as your rescuer.
So be warned: Foreclosure rescue scams are on the rise, taking thousands of dollars from desperate mortgage holders, or even tricking them into signing over the deed to their homes.
Federal and state officials have said they are cracking down on those scams. Massachusetts Attorney General Martha Coakley has filed civil complaints against three different mortgage rescue schemes. And both Massachusetts and New Hampshire have laws that limit what any for-profit entity can do to “help” someone facing foreclosure. Still, an informed consumer is a better-protected consumer. And as is the case in any business transaction, extravagant promises are unlikely to be kept. First, those who approach you with an offer to protect you from foreclosure are likely to have their interests, not yours, as a priority. Second, the best and safest thing a mortgage holder can do is to try to negotiate directly with the bank. Given the state of the economy, many of them are willing to discuss ways to modify the payment schedule. Most of them don’t want to take your house any more than you want to lose it. Third, most communities or regions have nonprofit organizations that provide homeowner counseling for free, like Neighborhood Legal Services in Lawrence. But Coakley and other officials also offer reminders to stressed mortgage holders who might be approached by a firm offering to help keep them in their home
- Unless it is an attorney you have hired, don’t give anyone any money upfront. It is illegal to demand it.
- Never transfer the title of your home to another party.
- If you decide to hire a firm, it is required to state precisely how it will help you.
- Do not give personal or credit information to anyone you do not know.
- Remember that your lender must give you a default notice, and 90 days to “cure” it.
Too many people are victims of the recession. Don’t be victimized again by unscrupulous scammers.
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