| Foreclosures are currently at an all time high, home | | | | own in your life. Do not risk it to a fly by night company |
| values are rapidly declining, and the housing market is | | | | with no reputation or history. Always perform checks |
| unstable at best. These times have created stressful, | | | | on potential mortgage lenders and look for warning |
| and huge financial problems for homeowners all | | | | signs it may be a scam. |
| across the country. Unfortunately, some homeowners | | | | -You should check is that the company is actually on |
| are being taken advantage of, and it could cost them | | | | record with your state. |
| their home, a lot of money, or both. Here are some of | | | | -Check the companies performance record with the |
| the most popular scams a homeowner may be lured | | | | state, and how long they have been in business. |
| into when facing foreclosure or mortgage modification. | | | | -Be sure to know whether or not they are considered |
| 1)Know the Methods of Advertising Most Common for | | | | a non profit or for profit company. |
| Scam Artists and Con Men | | | | -Be sure to check the individuals references and |
| The most common methods mortgage scams use to | | | | experience. |
| contact homeowners is through mail, email, and phone | | | | -Ask for the name of the legal consultant who will be |
| solicitations. A lot of scam artists also use television | | | | handling the closing and paperwork. |
| and radio commercials with nice, slick sales pitches | | | | 3)How does this scam work? |
| with huge promises for homeowners. | | | | Typically, these scam companies will request a large, |
| Most of the time, these scams are based around the | | | | non refundable, up front fee. For this fee, a scam artist |
| fact that the company you are working with is not a | | | | will claim that the costs of refinancing or home loan |
| mortgage lender or bank at all. They often disguise | | | | modification are covered, and no extra money is |
| themselves as mortgage consultants. This is an | | | | needed. They claim to know how to work the |
| extremely broad title, and means absolutely nothing. | | | | mortgage lender or banks in your favor, and that they |
| They will charge homeowners thousands of dollars | | | | can get you a great deal. In reality, they do very little, if |
| and promise that they can find them a good mortgage | | | | anything at all. They usually do not have the know how |
| interest rate, an approval, or lots of other things. They | | | | or experience needed to properly find good deals for |
| rarely come through with what they promised, and do | | | | homeowners. If they do anything at all, you can do the |
| they exact same job you are able to do easily and for | | | | same thing for free in 15 minutes or less. |
| free, and get the same results. | | | | Always remember that if it sounds to good to be true, |
| 2)Homeowners should check into the credentials of | | | | it probably is. Do not fall victim to predatory mortgage |
| any mortgage companies or professionals. | | | | lenders. Protect yourself. |
| Your home is the most expensive thing you will ever | | | | |