Beware Of Mortgage Rescue Companies Scam
When the times are unclear and there is financial stress everywhere, you should be warned from ‘mortgage rescue companies’ scams. Too many homeowners who have been in some kind of foreclosure process were approached by mortgage rescue companies and were ripped off all their money and in some cases all of their home equity as well!
31 Percent of all U.S homes are in some kind of for closure or or bank-owned accounted. This means millions of people are the candidates to fall into the dirty fingers of mortgage rescue scams.
* Not all mortgage rescue companies are scam artists. Do a thorough inquiry about the company who you plan to work with.
Targeting The Weak And Vulnerable
The ‘mortgage rescue’ companies advertise everywhere, promising to save your home from foreclosure. You may see very confident promises how they will rescue your home from foreclosure, get you great terms for loan modification. The sales pitch will be so convincing that it will be very tempting to believe that your rescuers are just a phone call away!
The sales pitch of mortgage rescue scams will include a realistic description of your situation. This is how they cause so many people to take action. The advertisement or telemarketing call may include description of hopeless future, victimize feeling confronting lenders, the devastating scenario where you lose your home and get thrown to the street!
While many see and get these calls, in most cases the weak and helpless will be caught at the mortgage rescue companies scam nets.
Mortgage Rescue Companies Scams And Frauds
There are endless ways to scam people. Mortgage rescue companies scam people in two main ways.
Get Up Front Fees – And Do Nothing – The first way to scam people who face foreclosure is to throw them a life jacket with a promise to save their home. Promises include to halt the foreclosure process and save their family from the sure visit to the homeless shelter.
What will really happen is that they will ask for upfront fees (which is against the law) and will not do much. They will ask for fees and payments for services customers may get for free. They will request payments for services which can be found at no cost at lenders websites or free over the web.
Pay Off Your Mortgage – And Throw You Out – In this mortgage rescue scam, the scam artists will step forward and offer to pay off your home loan. This may sound as a real lifesaver, but it will be eventually a deadly bite of a black widow.
The mortgage rescue scam, will pay off your delinquent loan. They will ask you to sign over the deed and will let you pay ‘rent’ in the meanwhile. The scam is preformed when they do not continue to pay the loan. In these month you keep paying them rent.
Until the scam is discovered your situation is much worst. Some have lost all the equity they have managed to build up on their home.
Defend Yourself From Mortgage Rescue Assistance
The best advice would be to solve any of your mortgage problems directly with your lenders. They have all the interest in the world to help you out. Going to foreclosure is worst cases scenario for you, but it is a bad scenario for the lenders too.
Contact Your Lender
It is wise to approach your lenders as soon as you see the storm arriving. If the sky gets cloudy, its time to contact your lender. What does cloudy means.. Is your workplace sizing down? The company you work in have lost a major account? Your wife has been fired? New baby in the family? All these are examples of scenarios worth sharing with your lender.
The lender can offer some new programs to settle the new situation, (offer to extend mortgage to a longer term) or a whole new refinanced mortgage.
Mortgage rescue company scams will advise you not to contact your lender for any reason, or better to avoid any contact with your lender, and may offer to be your representative. By offering this intermediary service they are masking you away from your real situation.
Contact HUD-approved Counseling Agencies
These counseling services are free and can solve issues which have not been solved directly with your lender. They are professional trained experienced personnel, and have a wider knowledge of current financial solutions and mortgage modification possibilities.
The Department of Housing and Urban Development (HUD) and the Federal Trade Commission(FTC) have put great emphasis on breaking down these ‘mortgage rescue company’ scams as they cause great instability to the housing markets. They are rocking a sinking boat.
So What is The Next Step?
If you will do nothing.. don’t expect anything to happen.
If your score is below 700, you might want to clean it yourself – get this ‘Credit Repair University’ which will save you money and time.
Yes, you might need to invest a small sum to get a grip of things.. But if you think education is expensive.. try ignorance..
You are probably paying thousands of dollars per year in fees and interests to credit companies which could be going straight to your pocket. So do your math…
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