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I Have Seen Ads and Flyers From Companies Offering to Help Me Avoid Foreclosure for a Fee. Are These Companies Helpful?
Foreclosure prevention has become a target for scam artists. We suggest using the HUD Web site referenced in question 9 to locate a counselor near you. We suggest using the HUD Web site U.S. Department of Housing and Urban Development (HUD) to locate a counselor near you. Additionally, here are some tips and warning signs:
How to Spot a Scam – beware of a company or person who:
- Asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.
- Guarantees they can stop a foreclosure or get your loan modified.
- Advises you to stop paying your mortgage company and pay them instead.
- 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.
- Claims to offer “government‐approved” or “official government” loan modifications.
- Asks you to release personal financial information online or over the phone and you have not been working with this person and/or do not know them.
How to Report a Scam – do one of the following:
- Go to Prevent Loan Scams and fill out the Loan Modification Scam Prevention Network’s (LMSPN) complaint form online and get more information on how to fight back. Note: you can also fill out this form and send to the fax number/e-mail/address (your choice!) on the back of the form.
- Call 888.995.HOPE (4673) and tell the counselor about your situation and that you believe you got scammed or know of a scam.