How to avoid mortgage scams
Loan modification fraud, foreclosure rescue schemes, and mortgage scams are on the rise. Here are tips to help you avoid them:
- Beware of anyone who asks you to pay a fee in exchange for a housing counseling service or modification of a delinquent account. There should never be a fee to get help or information about the programs available to you or to modify your account.
- Loan modification scammers often target homeowners who are struggling to meet their account commitment or anxious to sell their homes. Recognize and avoid common mortgage scams.
- Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
- Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
- Never send a mortgage payment to any company other than the one listed on your monthly mortgage statement or one designated to receive your payment.
- Beware of anyone promising to “reinstate your loan” for a fee. Scammers sometimes contact people who are in a foreclosure, loss mitigation, or loan modification process. They may promise to speed up or stop the foreclosure for a fee, or to reinstate your mortgage. This phishing attempt is illegal. Please report any phishing attempts to your ditech rep.