As more homeowners face foreclosure, we want to remind people not to get scammed by “loan mod” companies and other for-profit companies that make promises to rescue homeowners in default. Their slick and appealing marketing materials may have you believing that they can save your home, your world, and your future, but don’t be taken in. If you need foreclosure assistance, we urge you to contact TRIP’s HomeOwnership Center at 690-0020 for free, confidential, and professional assistance. You may also contact any of the reputable not-for-profit housing counseling agencies listed on the NYS Division of Housing and Community Renewal’s website at https://hcr.ny.gov/foreclosure-prevention
Please also note that there will be monthly Foreclosure Clinics held locally with free legal review and housing counseling available. April 15 and May 12 at the Legal Project. 5-8pm. Contact TRIP at 690-0020 for more info.
A national campaign has been created by HUD, NeighborWorks America, and others to provide important info to consumers. You can find some valuable information at its website at www.loanscamalert.org. A list of “6 Things You Should Know” is copied below from the website.
New York State is also getting the word out to consumers to beware of scams. A Statewide “Loan Modification Scam Alert” campaign was launched last month during Consumer Awareness Day. For more information, go to https://www.dos.ny.gov/consumerprotection/.
6 Things You Should Know
Scams aren’t always easy to spot – but it helps if you know the warning signs to look for. Here are six red flags to indicate that you may be dealing with a loan modification scammer:
1. A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may pocket your money and do little or nothing to help you save your home from foreclosure.
2. A company/person guarantees they can stop a foreclosure or get your loan modified. Nobody can make this guarantee to stop foreclosure or modify your loan. Legitimate, trustworthy HUD-approved counseling agencies will only promise they will try their very best to help you.
3. A company/person advises you to stop paying your mortgage company and pay them instead. Despite what a scammer will tell you, you should never send a mortgage payment to anyone other than your mortgage lender. The minute you have trouble making your monthly payment, contact your mortgage lender.
4. A company pressures you to sign over the deed to your home or sign any paperwork that you haven’t had a chance to read, and you don’t fully understand. A legitimate housing counselor would never pressure you to sign a document before you had a chance to read and understand it.
5. A company claims to offer “government-approved” or “official government” loan modifications. They may be scam artists posing as 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. And, remember, you do not have to pay to benefit from government-backed loan modification programs.
6. A company/person you don’t know asks 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, like your mortgage lender or a HUD-approved counseling agency.