Recognizing Scams - Save Your Credit Foundation

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Recognizing Scams

Loan Scams - How to recognize them and how to avoid them.
Report Scams - Call the Federal Trade Commission at 877-382-4357 or submit your complaint online.
6 Ways to Spot a Scam
1. They ask for a fee in advance to modify, refinance or reinstate your mortgage.
It is illegal for a company or person to charge fees in advance for these services according to the Federal Trade Commission (FTC) Mortgage Assistance Relief Service (MARS) Rule. NOTE: Attorneys are allowed to charge fees in advance if they meet certain requirements  and place fees in a client trust account. But be careful! Attorneys, and people pretending to be attorneys, have been known to take advantage  of homeowners, too.  
2. They guarantee they can stop a foreclosure or get your loan modified.  
No one can make this guarantee to stop a foreclosure or modify your  loan. Many scammers offer "money-back" guarantees to make you feel more comfortable. But why do you need a money-back guarantee when getting a  loan modification is supposed to be free?
3. They tell you to stop paying your mortgage company or tell you to pay them instead.
Never stop paying your mortgage and never send a mortgage payment to  anyone other than your mortgage lender no matter what a scammer tells  you. As soon as you have trouble paying your mortgage, contact your mortgage lender and ask for the loss mitigation department.
4. They pressure you to sign over the deed to your home or sign any  paperwork that you haven't had a chance to read and don't fully  understand.
Be careful. Signing over the deed to your home may not prevent  foreclosure. You are still responsible for paying your mortgage even if  you sign over the deed to your home. A legitimate housing counselor  would never pressure you to sign any document before you had a chance to  read and understand it.
5. They claim to offer government approved or official government loan modifications.
They may be scammers pretending to be legitimate organizations  approved by, or affiliated with, the government. Contact your mortgage  lender first. Your lender can tell you whether you qualify for any  government programs to prevent foreclosure. You can also call the local HUD-approved counseling agency  to determine if they are legitimate. And, remember, you  do not have to pay a fee to benefit from government-backed loan  modification programs.  
6. They ask you to release personal financial information online or over the phone.  
You should only give this type of information to companies that you  know and trust, and even then, only after you have confirmed that they are legitimate.  
The Save Your Credit Foundation, Inc. is here to help those who want a fresh start. Our counselors will explain the Pros and Cons with each program that they offer, but only call when you are willing to walk away from your home because you will be required to move out of your home shortly after chosen for one of the programs. But not to worry, if chosen, you will have enough money to move into your new place. And most people have money left over to catch up with some bills.
 
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