If you’re behind on your mortgage, any offer of assistance gives you hope. And that’s what scam artists count on: That desperate home owners will agree to almost any product or service that will supposedly help them avoid foreclosure.
Companies claim that they can lower your payments by changing your loan terms. They might claim affiliation with your lender or even the federal government. But nearly all their promises of relief are false. Here are some warning signs to look for.
Up-front fees
Just pay a fee, and the scammer will negotiate with your lender or have a mortgage expert review your loan to exploit loopholes. Of course, once you pay the fee, you’ll never hear from the scammer again.
Rent-to-own situations
You can’t afford to own the home, but what if someone buys it from you and lets you stay there and rent it? All you have to do is sign over the title. Several variations on this scam exist—all involve the promise that you’ll be able to buy back the home—and they all end up with you losing the home.
Buried documents
Scammers may promise you a loan to make things right with your lender. The terms are usually too good to be true, which should be your first warning. Among the many official-looking but ultimately bogus documents you’ll be asked to sign is one real one: It surrenders the title to your house.
Don’t fall for a scam. The first person to contact if you’re having trouble with your mortgage payments should be your lender. He or she may be able to make modifications that keep you in your home. You can also reach out to your state’s housing agency or the U.S. Department of Housing and Urban Development for help identifying a local mortgage counselor.