How to Avoid Mortgage Foreclosure Scams

Many homeowners are feeling the pinch of the current economy and have received a foreclosure notice, or anticipate receiving one soon.

When this situation occurs, there are companies and people who "want to help" who will want money up front and be of no assistance. These are scammers and con artists who want to get your money when you are most vulnerable.

Difficulty: Moderate

Instructions

Things You'll Need:

• awareness
• your computer
• time and ability to read the options

1. RECOGNIZE A POTENTIAL SCAM. Do not sign anything or pay any money up front if you are contacted about your mortgage foreclosure issue. If someone promises to get a mortgage loan modification or stop a foreclosure for you, do not act.

2. REPORT A POSSIBLE SCAM. Contact your mortgage company and the FTC if you receive this kind of "assistance." They are actively pursuing companies that are scamming mortgage owners in many states. Many states have a law that prohibits receiving a fee before providing services.

3. PROTECT YOURSELF WITH KNOWLEDGE. Go to the FTC website provided in Resources and read about the scammers and the approaches they have taken to get money and provide no assistance to the homeowner. Watch the YouTube video provided by the FTC, "Real People, Real Stories". A link is provided in the Resources below.

4. ASSIST THE FTC AND YOURSELF. If you are contacted by a questionable organization wanting to help, contact the FTC.gov website or call the HOPE number provided below. Be a wary consumer, and do not let the direct mail solicitors or telephone con artists invade your privacy or your money.

Tips & Warnings

• YOU are the best person to help yourself with your foreclosure issues. Study on the internet, particularly FTC.gov website and see what you can do to help yourself.
• 1 877 FTC HELP is a telephone number to get assistance from the FTC.
• 1 888 995 HOPE is the FTC number for housing counselors. Did you know you can get free counseling?
• copyright 2009 Linda Richard

Resources

• FTC Loan Lies
• Real People, Real Stories Video
• FTC Home Information
• Making Home Affordable website
• Contact Us

[karileighk]

on 7/16/2009 What a scary way to be scammed.

[mweise]

on 7/16/2009 Great information! Passing this on to friends struggling with this. Good article, 5*

[kristara]

on 7/16/2009 So sad to have scammers take advantage of people who are already in a bad state. 5*

[livluvlaf729]

on 7/15/2009 Good info - I'm sure it will be very helpful to many.

[keithcs]

on 7/15/2009 Great article on how to avoid mortgage foreclosure scams. 5*