In today’s times of high mortgage delinquencies, scam artists have started targeting desperate homeowners seeking to avoid foreclosure. Here are some tips to avoid foreclosure in the future from CNNMoney.com.
Bernell Grier, CEO of Neighborhood Housing Services of New York (NHS) believes that alert consumers will be able to recognize the difference between fraudulent and legitimate foreclosure assistance by being aware of these tell-tale signs:
Avoid anyone who:
- Asks for a fee in advance. These upfront fees, typically ranging from $1,000 – $5,000, could be the last you’ll see or hear about any foreclosure help. Most people who ask for fees upfront never go through the motions of talking to lenders or working out modifications.
- Tells you they can guarantee foreclosure will stop. This is an impossible promise since no one can make this 100% certain guarantee, especially before they find out more about the individual circumstances pertaining to your foreclosure.
- Urges you to stop paying your mortgage and pay them instead. People who make this request are only trying to add to the money they’ve already cheated you out of by keeping up the pretense of trying for a modification.
There is good news, however. Many community groups, including NeighborWorks affiliates, offer expert and free help for homeowners but don’t have the funds to advertise their services. Keep in mind that it is easier for scammers to invest in fliers, mailers, and even television and online ads.