When people get behind on their mortgage payments and are afraid of losing their houses, they can fall prey to con artists who profess to help. The COVID-19 pandemic has given con artists even more clout to prey on anxious homeowners by making false promises to help them pay off their debts and avoid foreclosure.
Scammers who specialize in mortgage relief look for victims in various methods. Online ads, posters fastened to telephone poles, and brochures slid under doors are all used by some to market legal or financial counseling services. Others look through local government property files or newspaper notices to find homeowners facing foreclosure. To suggest ties to reputable lenders, nonprofit groups, or the government-chartered mortgage giants Fannie Mae and Freddie Mac, they’ll utilize logos, letterheads, or “spoof” caller ID numbers.
Once they’ve contacted, the scam artists will promise to negotiate with a mortgage lender for a fee to lower or postpone payments and avoid foreclosure. They may try to persuade you to make home payments directly to them while they work out the kinks, or they may advise you to cease making payments altogether in the hopes of getting a better deal from your lender or the loan servicer in charge of your account. They’ll “promise” results or refund your money, sometimes citing a special relationship with banks that they’ll exploit on your behalf.
The Federal Trade Commission (FTC) advises that once they’ve stolen as much as they think they can get away with, they’ll cease receiving calls and simply vanish.
Scammers are courting house borrowers even more active now that the coronavirus is causing widespread economic misery, according to the Federal Housing Finance Agency (FHFA). Be careful of calls, emails, and texts claiming to be able to utilize the pandemic to decrease or postpone your mortgage payments. Genuine lenders and loan servicers provide borrowers hardship programs; contact yours to see what it can do to assist you.
Scammers who offer mortgage relief should be avoided. Signs to Look Out For
Four more techniques to help homeowners avoid foreclosure are as follows:
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.