How to Avoid Foreclosure Recovery Scams

When you are faced with the possibility of losing your home, probably would do anything to stop the foreclosure. Scam artists will take advantage of any desperation, so you must be on guard.

Instructions

Difficulty: Moderate

1. Establish a point of contact with your lender. Go to your contact for answers to questions about your mortgage and payments. Verify the accreditation of anyone who contacts you and claims to represent your lender's office. Call the office and speak to someone you know to confirm the rep's claims. This includes contact by email, phone, mail or personal visit.
2. Refuse third party consultation services that claim to prevent foreclosures or offer to serve as a middleman with the lender. These people often pick up a fee without delivering results.
3. Look out for scams that offer to take ownership of your home. You don't want to be obligated to continue making payments on a home you no longer own.
4. Send payments only to your lender. Call your lender to verify the legitimacy of someone claiming to be a go-between for payments.

Tips & Warnings

• Get all correspondence in writing.
• Consult an attorney if you don't understand something.
• Don't sign anything unless you've read it throughly.