If you’re facing foreclosure, you might be targeted by foreclosure rescue scams. These schemes promise to save your home if you pay them for services. Don’t be fooled. In this podcast we take a closer look at these scams and how to identify and avoid them.
Welcome to another edition of our CredAbility [now Clearpoint Credit Counseling Solutions] Podcast. Along with your host Mechel Glass, here is Steve Moore with some warnings about those who would try to take advantage of you if you’re facing foreclosure. Steve: With foreclosures affecting many home owners these days, there are scam artists out there wanting to take advantage of the situation and, Mechel, this is a sad situation, but, obviously, it’s one we should be aware of and one that you have some good information about today. Mechel: Yes, this is a sad and a frightening situation for home owners who are in distress. What mortgage rescue scams are, it’s when a perpetrator will solicit a home owner who’s in foreclosure and they will tell them that they can help rescue their home or save their home from foreclosure for a fee. And they find these distressed home owners by going through the internet, looking at newspapers or fliers or through publicly available county records. Another type of scam that predators use is a quit claim deed, and they’ll say, “Fill out this quit claim, ” which is basically handing over the title of the house to a third party. And they tell them to do this to avoid foreclosure and this is something that every home owner should never ever do. Some of the home owners have called us and told us about being recommended that they file for bankruptcy to save their home from foreclosure. Now, this is something that you should do as the last resort. If a home owner files for bankruptcy, it will stop the clock for that foreclosure. However, there are other things that a homeowner can do in place of filing for bankruptcy and that’s where a certified, HUD approved counseling agency would come into play. We can talk with you and let you know what are some of our recommendations to save your home from foreclosure and we’ll help you get in touch with your lender who is the person who can help you save your home from foreclosure, not a third party that’s telling you to pay a fee. If you’re talking with someone who wants a fee to help you modify your loan, save your home from foreclosure or anything like that, you should definitely hang up the phone or not talk to them anymore and you should call us, where we can help you free of charge. Steve: Mechel, it sounds like you’re saying that most of these scam artists are the folks that contact you as opposed to you contacting them?
Mechel: And that’s where you should be wary. If someone is contacting you and they’re requiring you to give them personal information or money upfront, you should definitely be aware that it’s potentially a scam or a fraud. Steve: Good information, Mechel, thanks. Mechel: Thank you.