While there are many dedicated professionals committed to helping struggling homeowners avoid foreclosure, the unfortunate reality is that the foreclosure crisis has its share of con artists. Too often, I have met with homeowners who have come to me after having been scammed by an alleged business claiming to help avoid foreclosure. These scams require homeowners to pay a large sum of money upfront and give the alleged “business” permission to speak with their financial institution. These scammers do nothing to help the homeowner, leaving them to face foreclosure despite having spent money for purported foreclosure defense services.
A strong indication of a foreclosure scam is when the alleged business tells the homeowner to send them their monthly mortgage payments, and claims it will then forward the money to the financial institution as part of a loan modification. Last month, a Lowell man was convicted of such a scheme, showing that such fraud remains prevalent as the foreclosure crisis continues.
How should homeowners beware of foreclosure scams?
- Research any business, non-profit, or attorney who you are considering hiring for your case. If you can’t find a reputable website, location of a physical office, or any indication that the service has been in operation for a while, proceed with caution.
- Stay clear of any business, non-profit, or attorney who requests that you make mortgage payments directly towards them. There is no reason why loan payments should go anywhere besides directly to your financial institution.
- As the old adage goes: if it sounds too good to be true, it probably is. If the purported foreclosure defense service guarantees to get you a free home or permanently avoid foreclosure, strongly considering speaking with a reputable professional.
If you find yourself in need of assistance with foreclosure, contact me for a consultation. Too much is at stake to take chances with a fraudulent foreclosure defense service.