Foreclosure Prevention
How To Avoid Scams
You Don't Have to be a Victim!
Many homeowners have fallen behind on their mortgage payments and are targeted for loan modification scams. Below are some tips and helpful links to the resources to protect the ownership of your home and its equity.
Foreclosure Rescue Scams
Foreclosure rescue scams occur when a company or person promises to help save your home from foreclosure, but is actually intent on stealing your home or most of the equity you have accumulated in your home.
There are several types of Foreclosure Rescue Scams you should be aware of:
1. Foreclosure Prevention Specialist – phony foreclosure counselors.2. Phantom Help - charges high fees for work the homeowner could do themselves.3. Lease/Buy Back – homeowners are deceived into signing over the deed to their home.4. False Bailout – the homeowner is lead to believe that they can rent their home from the new owners and eventually repurchase the home.5. Bait and Switch - the homeowner thinks they are signing new mortgage documents, but are actually signing over the deed to their home.
If you believe you are a victim of a Foreclosure Rescue Scam, contact the FL Attorney General’s Consumer Helpline at 1-866-966-7226.
What Should Consumers Do to Avoid Becoming a Victim?
Homeowners should NEVER pay any up-front fees and should avoid any high-pressure sales tactics. Fees may only be collected AFTER services are completed.
Homeowners should first try talking to their lenders or a lawyer before contracting with any third-party company for rescue or modification services.
If a homeowner believes he or she has been taken advantage of by a disreputable company, he or she should call the Florida Attorney General’s fraud hotline at 1-866-9-NO-SCAM or file a complaint online at www.myfloridalegal.com. The complaint will be reviewed by the Attorney General’s Mortgage Fraud Task Force.
Foreclosure Prevention Counseling
As a non-profit housing counseling agency working in partnership with the Federal Government and HUD-approved, we provide individuals and families with the information and assistance needed to avoid foreclosure through loan modification, short sale, or refinance.
As part of President Obama's comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.
If you are eligible for the loan modification or refinance program, our counselors will work with you to compile an intake package.
Foreclosure "Rescue Scams" Help
OCC Consumer Tips to Avoid Foreclosure Rescue Scamshttp://www.occ.treas.gov/ftp/ADVISORY/2008-1.html
National Consumer Law Center, Inc.’s Tips For Consumers On Avoiding Foreclosure “Rescue” Scamshttp://www.mass.gov/Eoca/docs/dob/avoidscam.pdf
Freddie Mac: Avoiding Foreclosure and Beware of Scam Artistshttp://www.freddiemac.com/avoidforeclosure/
HUD: How to Avoid Foreclosure and Foreclosure Prevention Companieshttp://portal.hud.gov/portal/page/portal/HUD/topics/avoiding_foreclosure
Federal Trade Commission: Mortgage Payments Sending You Reeling?Here’s What to Do - Be Alert to Scamshttp://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm
Organizations, like the Center for Foreclosure Solutions, help borrowers avoid foreclosure and help financially stressed borrowers avoid predatory foreclosure rescue scams.http://www.nw.org/network/neighborworksProgs/foreclosuresolutions/default.asp
Credit Counselors
How to Protect Yourself: Credit Repair and Debt Relief Services http://myfloridalegal.com/pages.nsf/Main/8C5B6B26667BE41485256EC2004D3252!Open
Florida Attorneys Team Up To Help Floridians Facing Foreclosurehttp://www.floridabar.org/TFB/TFBPublic.nsf/WNewsReleases/27BA9785ACA94045852574820076C703?OpenDocument
SCAM Alert: Avoid Foreclosure Rescue Scamshttp://www.occ.treas.gov/ftp/ADVISORY/2008-1.html
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