Beware Loan-Modification, Foreclosure Scams

One in nine homeowners nationwide are more than 90 days behind on their mortgage payments and fear of foreclosure has desperate homeowners turning to loan modifications or foreclosure rescue companies for help. But that may be a recipe to falling prey to a foreclosure scam.

Foreclosure scammers will promise you everything while using a wide variety of tactics and targets like asking for an upfront fee and then disappearing with your money. Since foreclosure laws can be complex and confusing, almost anyone can become a victim.

Here are some red flags to help you spot a scam:

  • They ask for an upfront fee to start work, which is illegal in California.
  • They’ll promise, even guarantee, to secure a loan modification even before learning about the homeowner’s financial limitations.
  • They’ll tell you to stop making your mortgage payments, going as far as encouraging you to provide fraudulent information to your lender.
    (*Source: KABC-7.com)
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