Beware of Homeowner Assistance Programs Scams

Do not be fooled by homeowner assistance programs that guarantee they can help you keep your home. In addition, there are scams that promise they can get your mortgage lowered. Often, when faced with a difficult situation, homeowners are more prone to believe those who are promoting bogus homeowner assistance programs because they do not want to lose their home. Also, the scammers sound believable and misrepresent themselves saying they have contacts within your mortgage company.

Scams involving homeowner assistance programs are rapidly increasing. Anything that can be turned in their favor is what scammers do best. When they contact a homeowner facing these problems, often they will tell them for a fee they can get the mortgage company to lower their interest rate to make the payment more affordable. Anyone who affiliates themselves with a homeowner assistance program and asks you for a fee is definitely worth investigating.

This includes fee-based counseling services as well as those who tell you they can get you a loan modification. Another thing they are doing as well is telling homeowners they can keep them from losing their home if they transfer the deed to them. A deed should never be signed over to anyone unless there has been a deal with your mortgage company to forgive the debt.

There are several options if you feel that someone is trying to scam you out of money or your home. The more information you are armed with lessens the chance that you will fall for one of these schemes. There are plenty of them and they get more sophisticated everyday. Your lender can tell you if someone from their office has contacted you. Always get a name so you can ask if that person works there.

Ask them what hours they are in the office so you can call them and beware if they give you a cell phone number and ask you to call it instead. Some may make the excuse that this is for your benefit – that you will be able to reach them easier. If they do not want you to call the office, you can be sure there is a reason.

Do not sign papers for anyone who approaches you with promises of lowering interest rates or modifying a loan. If this is legitimate, you will go to the office of your lender to take care of a refinance. Do not pay a mortgage payment to anyone other than the lender.

This is another part of the scams that are circulating today. There are so many it is hard to keep up with them, but by using a little caution when people call you or show up at your home, you will not be the victim of these scams. The Loan Modification Scam Prevention Network is a good resource for information about these scams.

For more information about homeowner assistance programs, please visit our “Find a Local Counselor” page, complete the form and we’ll be happy to assist you further.