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Guide to Real Estate in Los Angeles

Top Selling Agent, Specializing in Real Estate in LA and the Valley

By Richard Schulman | Agent in Los Angeles, CA

Loan Scams: 6 Things You Should Know

Homeowners facing foreclosure are at risk to be confronted mortgage loan scammers who seek to prey on homeowners' vulnerability and take advantage of their situation.  It is important to know what to look out for:

Six Warning Signs of a Foreclosure Scam:

  1. A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may pocket your money and do nothing to help you save your home from foreclosure.
  2. A company/person guarantees they can stop a foreclosure or get your loan modified. NO ONE can make this guarantee to stop foreclosure or modify your loan. Legitimate, trustworthy HUD-approved counseling agencies can assist you with options and facilitate communication with your mortgage company.
  3. A company/person advises you to stop paying your mortgage company and pay them instead. Despite what a scammer will tell you, you should never send a mortgage payment to anyone other than your mortgage lender. If you have trouble making your monthly payment, contact your mortgage lender or call the Homeowner’s HOPE™ Hotline at 1-888-995HOPE™.
  4. A company pressures you to sign over the deed to your home or sign any paperwork that you haven't read or you don't fully understand. A legitimate housing counselor should not and will not pressure you to sign a document of any kind.
  5. A company claims to offer "government-approved" or "official government" loan modifications. These may be scam artists pretending to be legitimate organizations approved by, or affiliated with the government. Check to be sure by contacting your mortgage lender directly or by calling Homeowner’s HOPE™ Hotline at 1-888-995HOPE™ to learn more about government programs for which you may qualify.
  6. A company/person you don’t know asks you to release personal financial information. Check to be sure you are speaking with a legitimate company/person by contacting your mortgage lender directly or by calling Homeowner’s HOPE™ Hotline at 1-888-995HOPE™.[Source: 955Hope]
To read more visit this article by 955Hope, a non-profit aiming to alert homeowners to fraud resources.

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