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Home » I Have Seen Ads and Flyers From Companies Offering to Help Me Avoid Foreclosure for a Fee. Are These Companies Helpful?

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.

The Loan Modification Scam Prevention Network is a national coalition of governmental and private organizations led by Fannie Mae, Freddie Mac, NeighborWorks America™ and the Lawyers’ Committee for Civil Rights Under Law.