Despite the attention being paid to foreclosure rescue scams, many people are still falling prey to them. Nonprofit housing counseling agencies that offer free assistance to homeowners facing foreclosure are trying to inform homeowners that they dont need to pay money to save their home. They hope that by keeping homeowners informed, they can watch for the signs that they are being scammed.
How the foreclosure scam works
When the Tatakamotonga family in Palo Alto, California lost their primary breadwinner, they were struggling to make their mortgage payments and were in danger of losing their home. They decided to seek a loan modification so that their payments would be more manageable. Thats when they stumbled across a private attorney who promised to help. The attorney told the Tatakamotongas that if they stopped making their mortgage payments, they would be more likely to qualify for the loan modification. He charged the Tatakamotongas 3,000 for his services and promptly had his phone disconnected.
The boldness of these foreclosure scams is alarming and they are only getting worse. The scammer succeeds by targeting the uninformed and desperate homeowner and promising results that no reputable attorney could promise.
Free help is available
What many homeowners dont realize is that free help is available to them. Nonprofit housing counseling agencies that are backed by the US Department of Housing and Urban Development (HUD) are safe and effective when it comes to assisting homeowners in getting loan modifications and other foreclosure prevention help. The Tatakamotonga family eventually contacted one of these organizations and they were able to track down the scammer, get their money back, and assist them in getting a loan modification.
Preventing foreclosure scams
In order to curb the growing number of foreclosure scams, nonprofit housing counseling agencies are working hard to keep homeowners informed so that they can watch for the warning signs. They warn homeowners to stay away from private attorneys who charge for loan modification help. Homeowners should never trust a person who encourages them to stop making mortgage payments or who tells them to make mortgage payments to anybody besides their lender. Finally, homeowners should never sign over their property deed unless their servicer is directly involved in the process. If at any point a homeowner is asked to sign something they dont understand they should contact a nonprofit housing counseling agency and ask for assistance.
Business, real estate, and bankruptcy law and litigation news brought to you by Home | Murphy, Bantz, & Bury, P.L.L.C. - Spokane Business Corporation Real Estate Bankruptcy Landlord Attorney
Source: Foreclosure Rescue Scams Still Common, Warn Housing Counselors - New America Media
How the foreclosure scam works
When the Tatakamotonga family in Palo Alto, California lost their primary breadwinner, they were struggling to make their mortgage payments and were in danger of losing their home. They decided to seek a loan modification so that their payments would be more manageable. Thats when they stumbled across a private attorney who promised to help. The attorney told the Tatakamotongas that if they stopped making their mortgage payments, they would be more likely to qualify for the loan modification. He charged the Tatakamotongas 3,000 for his services and promptly had his phone disconnected.
The boldness of these foreclosure scams is alarming and they are only getting worse. The scammer succeeds by targeting the uninformed and desperate homeowner and promising results that no reputable attorney could promise.
Free help is available
What many homeowners dont realize is that free help is available to them. Nonprofit housing counseling agencies that are backed by the US Department of Housing and Urban Development (HUD) are safe and effective when it comes to assisting homeowners in getting loan modifications and other foreclosure prevention help. The Tatakamotonga family eventually contacted one of these organizations and they were able to track down the scammer, get their money back, and assist them in getting a loan modification.
Preventing foreclosure scams
In order to curb the growing number of foreclosure scams, nonprofit housing counseling agencies are working hard to keep homeowners informed so that they can watch for the warning signs. They warn homeowners to stay away from private attorneys who charge for loan modification help. Homeowners should never trust a person who encourages them to stop making mortgage payments or who tells them to make mortgage payments to anybody besides their lender. Finally, homeowners should never sign over their property deed unless their servicer is directly involved in the process. If at any point a homeowner is asked to sign something they dont understand they should contact a nonprofit housing counseling agency and ask for assistance.
Business, real estate, and bankruptcy law and litigation news brought to you by Home | Murphy, Bantz, & Bury, P.L.L.C. - Spokane Business Corporation Real Estate Bankruptcy Landlord Attorney
Source: Foreclosure Rescue Scams Still Common, Warn Housing Counselors - New America Media
