Beware of foreclosure rescue scams! While not all companies that approach you to help you save your home are trying to take advantage of you, you need to be cautious if someone offers help that sounds too good to be true.
Foreclosure scam artists take advantage of people who are facing foreclosure. After reading the lender published foreclosure notice, scam artists may contact the homeowner in person, by mail, over the telephone, or by e-mail. They may advertise their services on web sites or publications. They often refer to themselves with titles that sound official, such as “foreclosure consultant” or “mortgage consultant,” and market themselves as a “foreclosure service” or “foreclosure rescue agency.”
Do not sign anything until you have contacted a HUD-approved housing counselor or your loan servicer or lender and have asked them about the offer before making a commitment. A reputable counselor will not:
- Promise to save your credit or stop the foreclosure process.
- Request a fee in exchange for housing counseling services or modification of a delinquent loan.
- Tell you they can “save” your home if you sign or transfer over the deed to their house.
- Tell you to make your mortgage payments to someone other than your lender.