Avoid Mortgage Scams

As a home owner who is in danger of losing your home to foreclosure, you must be careful in dealing with a company/person who might give you false promises of saving you from foreclosure.  Knowing how to identify these scams can help you save money and headaches in the future.  Remember, KNOWLEDGE IS POWER!  If you know how to spot scams, you can avoid dealing with them and you can report them to the proper authorities.  

Here are some things you should know to indicate that you may be dealing with fraud: (Source: www.freddiemac.com)

- A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.

- A company/person guarantees they can stop a foreclosure or get your loan modified.

- A company/person advises you to stop paying your mortgage company and pay them instead.

- 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 company other than your lender claims to offer "government-approved" or "official government" loan modifications.

- A company/person you don't know asks you to release personal financial information online or over the phone.

If you or you know someone who have encountered mortgage fraud, you may report them to 1-800-4FRAUD8.

If you are in the danger of facing foreclosure, don't be afraid to seek help.  Here are some things that you can do to avoid losing your home to foreclosure.

1. Call your mortgage lender.  If you are having difficulties in keeping your payments up to date, your lender may offer you some options to help you make your payments more affordable (this might involve lower monthly payments but longer term) and to avoid foreclosure. 

2. Call Freddie Mac Borrow Help Centers.  They offer free, confidential counseling assistance if you are behind on your monthly payments. 

3. Call Housing Counselors. To talk to a housing counselor, you may check out http://www.hud.gov/offices/hsg/sfh/hcc/fc/index.cfm?&webListAction=search&searchstate=AK&filterSvc=dfc for a list of HUD Housing Counseling Agencies located in Alaska.

Remember, the government offers their service for free.  You do not have to spend a single centavo for their assistance.

For more information about foreclosures, please don't hesitate to contact me.