The Department of Housing and Urban Development (HUD) has just launched PreventLoanScams.org, a Web site dedicated to helping Americans recognize the many warning signs of home loan modification scams before being taken by one of this growing herd of bottom-feeders.
"Troubled homeowners lose time and money when they are tricked by con artists who promise to help but never do," said John Trasvina, HUD Assistant Secretary for Fair Housing and Equal Opportunity in a press release. "This initiative combines the collective energies of public and private enterprises to strengthen the ability of law enforcement to prosecute scammers and protect homeowners."
Along with being able to report loan modification scams, homeowners can look to PreventLoanScams.org for tips on avoiding loan modification scams, including:
- Being asked to pay a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.
- The company will only take payment by cashier's check or wire transfer.
- They "guarantee" they can stop a foreclosure or get your loan modified.
- The company tell you to stop paying your mortgage company and pay them instead.
- They tell you not to contact your lender, lawyer, or credit or housing counselor.
- You are pressured to sign over the deed to your home or sign any paperwork that you have not had a chance to read or do not fully understand.
- They try to get you to sign documents with blank lines and spaces.
- They offer to complete the paperwork for you.
- The company offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale.
- The company encourages you to sign over your title in order to "lease" your home now and buy it back over time.
- They offer "government-approved" or "official government" loan modifications.
- A company or person you do not know asks you to release personal financial information online or over the phone.
- They offer to give or sell you a "second opinion" on a denial of your loan modification application.
Details on all of the scam-signs, along with information about legitimate foreclosure assistance, are available at PreventLoanScams.org, a part of the Loan Modification Scam Prevention Network.
Also See:
More Foreclosure Scams to Watch For
Obama's Home Loan Help Goes Online
Comments
I was treated a little different. I got were I couldnt work no more and got behind 6 or 7 months on my morgage. I sold my work truck for about nothing but was enough to pay up on the loan.Then another 6 or 7 months went by and my father paid for that forclosuer. Then one more time. 6 or 7 months pasted and I finally get my disability agreement on 12-15-08′.The ssa knowing the situation aloud to make the payment to save my home and paid from my back pay to the bank.In total it was around 19000.00. I was told all of that money went to lawyers , investigators and forclosuer cost. That none of the money went towards the loan at all.
The loan officer said it will take a little bit to get the paper work fixed up . For us to wait and he will call us for the rewrite of the loan papers. He said not to worry about making any payments until he gets the loan figured out and signed.
January, Feburary and in the middle of March he said he was ready for us to come in . The only way to rewrite the loan , we had to go for a 2 year fix loan then the rest of it to be a balloon loan..
After looking into it I found out Obama started a loan assistant program that if you are behind or in trouble of losing your home. The goverment was willing to give a very low loan through them only if you have this loan before January 1. So with him holding off for so long left us with out any assistants .
I just want to complain. It could had been enough for my family to have a x-mas or just to go out like normal people.Thank you for listening to me complain..