The National Consumer Law Center (NCLC) reports an increase in foreclosure scams, with scammers now trying to sell endangered homeowners phony 'loan modification' assistance. Many imply they are affiliated with government programs when they are not. As a result, homeowners lose thousands of dollars a piece for phony assistance.
If you or someone you know is in need of assistance, one of the best places to start is the Make Home Affordable website: http://makehomeaffordable.gov. It contains free hotline information, the latest and truest news about government sponsored programs, and specific do's and don'ts related to foreclosure scams. The site urges you to keep the following in mind to avoid being scammed:
Beware of anyone who asks for a fee in exchange for counseling assistance. Assistance from a HUD-approved counselor is free.
Beware of anyone who pressures you to sign papers immediately.
Do not sign over the deed to your property unless you are working directly with your mortgage company to forgive your debt.
Never make a payment to anyone other than your mortgage company without their approval.
