“Con artists follow the news closely and adapt their schemes to whatever is the crisis of the day,” says Susan Grant, the director of consumer protection for the Consumer Federation of America.
With layoffs increasing and foreclosures on the rise, con artists are now targeting homeowners who are having trouble paying their mortgage. The “foreclosure rescue” or “loan modification” scam is the fastest growing rip-off that Oklahoma consumers should be aware of.
Generally, these scammers will offer to renegotiate the terms of your mortgage and stop a foreclosure if you will pay their upfront fees which can be quite hefty. Unfortunately, many homeowner who have been suckered into this trap, pay thousands of dollars up front only to have the scammers disappear.
Here are some warning signs that a foreclosure rescue or loan modification company may be a not on the up and up:
- Has no telephone number or physical address.
- Has an “.org” Web site or e-mail address but isn’t a nonprofit.
- Demands a fee in advance.
- Tells you to send your mortgage payment to anyone other than your loan servicer.
- Instructs you to transfer ownership of your property.
- Makes verbal promises that aren’t put in writing.
- Asks you to sign a document that has blank lines or spaces.
- Claims to be a national company but has only one or a few local offices.
There are legitimate real estate loan companies and mortgage brokers that offer loan modification services but again homeowners should be wary. Reports suggest that many of these legitimate companies tend to exaggerate what they can actually do. They might put in a couple of calls to your mortgage company, and when they fail to produce results, they shrug their shoulders and claim, “We did the best we could.”
Trouble is, loan brokers and real-estate agents often don’t have the expertise or the authority to renegotiate loans for you. There are some former mortgage brokers and real-estate agents out there scrambling to make a buck, and they think they know everything about foreclosures, but they don’t.
And don’t think that just because someone is a licensed attorney means that he or she can help you either. Law like medicine has become specialized. You would be unwise to hire a lawyer who claims to be able to help you with modifying your home loan if that lawyer has no real-estate expertise.
If you are facing home foreclosure in Oklahoma and would like to know more about how bankruptcy may be able to help you, contact me today by phone or email to schedule a FREE initial consultation. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.
Source: MSN Money.
