You’re vulnerable when you’re facing foreclosure. You’re under a lot of stress, and you may not know what you should do to protect your home.
So if you’re in this situation, it’s very important for you to know the signs of a mortgage scam so you don’t lose money you can ill-afford to lose.
Asking for money up front.
Anyone asking for money to help you modify your mortgage or to avoid foreclosure through some sell-and-rental agreement is not to be trusted. It’s very common for these people to tell you to sign the deed of the house over to them, promising you can rent it from them at a reduced rate until you can buy it back.
Then, they have you evicted. And because you didn’t get any money out of the deal, the loan isn’t paid and the foreclosure continues to live in your public records.
Using government programs that may be closed or non-existent.
Scammers often tell you they’ve gotten some sort of authorization to enroll people in government programs. But if you check the names of the programs, they’ve often been either discontinued or don’t exist at all.
A quick Google search will help you figure out what you need to know.
Realize your lender is the only one who can modify your loan for you.
Modifications are always at the discretion of the lender. The government can put together certain incentive programs to make it attractive for your lender, but as the many, many denied mortgage loan modifications have shown, they don’t always do it even when they’re being rewarded for doing so.
You should be suspicious of anyone who claims any kind of special relationship with your mortgage company. As it is, you already have a relationship with your lender, as their borrower.
Communicate with your mortgage company or your lawyer, and refuse to deal with anyone else.
Even if you don’t see any of these signs, you could be looking at a mortgage scam.
If your lender won’t work with you, turn to your lawyer. We handle mortgage defense cases in Pennsylvania and New Jersey, as well as the bankruptcy cases which can put you into a better position when all else fails.
If your house is in trouble and you’re not sure what to do, call the Law Offices of Sadek and Cooper for a free consultation.