Be On the Alert for Foreclosure Prevention Scams
A profusion of scams has erupted since this financial crisis hit. With aid being promised from the government, and with people becoming increasingly desperate, it is no surprise that the unscrupulous are trying to scam many folks out of their hard-earned cash. CNN Money has information on foreclosure prevention scams that are cropping up:
She’s worried because many of the companies advertising their services charge or take up-front fees and then do little or nothing for their clients.
“There are many rescue scams that are after your business,” Rodriguez said. “They’re guaranteeing something they can’t and charging a lot. Even the legitimate for-profit services demand a high pay-out up front.”
Before you decide to agree to a foreclosure prevention plan, you should ask some questions. CNN Money has these questions to ask the organization offering foreclosure prevention help:
- How much does the foreclosure prevention counseling service cost? Foreclosure prevention counseling should be free, from a non-profit. Don’t pay money up front to someone who presents him or herself as a “counselor.”
- How long has the company been counseling? Watch out for new companies. Established companies are more likely to know what is going on — and more likely to be less fraudulent.
- Does the foreclosure prevention counselor have knowledge of your mortgage servicer’s loan modification specialists? You want a foreclosure prevention specialist with access to your mortgage servicer. He or she will be better able to help you in this case.
- Does the counselor stick around? Be wary of companies that shift you to other caseworker.
Of course, you should still be on the look out. Don’t sign anything you don’t understand, and don’t sign the title of your home over to anyone. When in doubt, have a trusted friend or lawyer go over the paperwork first.
There are resources out there to help with foreclosure prevention. But you have to be vigilant to make sure that you aren’t falling prey to a scam.
