If you are behind on your mortgage, beware of mortgage relief scams.
There is free foreclosure help. If anyone tries to charge you in advance for help or guarantees that they can stop your foreclosure, they’re not legitimate.
Here are some red flags that can help you spot and avoid mortgage relief scams:
- You’re asked to pay up front for help.
- The company guarantees it will get the terms of your mortgage changed.
- The company guarantees you won’t lose your home.
- You’re instructed to send your payment to someone other than your mortgage company or servicer.
- You’re told to stop paying your mortgage.
- The company says they’re affiliated with the government or uses a logo that looks like a government seal but is slightly different.
If you see one of these warning signs, take your business elsewhere. The CFPB has information on how you can avoid foreclosure and tips for working with your mortgage servicer.
Knowing your rights under the CARES Act and guidance from the US Department of Housing and Urban Development also can help you avoid mortgage relief scams. If you experience financial hardship due to the COVID-19 pandemic, you may have a right to temporarily pause or reduce your monthly mortgage payments through a forbearance. Servicers also may not be allowed to foreclose on your home. For more information on COVID housing protections and important deadlines, visit consumerfinance.gov/housing.
Some more posts
Twitter:
Want to know about your options for housing relief during the COVID pandemic? Check out consumerfinance.gov/housing via @CFPB.
Avoid foreclosure rescue scams. Know your rights. Learn more at consumerfinance.gov/housing via @CFPB.
Need help with your mortgage? Here are four things you should know: https://www.youtube.com/watch?v=ahSICkautsk via @CFPB
Mortgage loan modification scams are schemes to take your money – often by making a false promise of saving you from foreclosure. Learn more: https://www.consumerfinance.gov/ask-cfpb/what-are-mortgage-loan-modification-scams-en-272 via @CFPB
Not sure where to go for mortgage help? Find a housing counselor: consumerfinance.gov/mortgagehelp/ via @CFPB
Facebook:
Knowing your rights under the CARES Act and guidance from the US Department of Housing and Urban Development can help you avoid mortgage relief scams. If you experience financial hardship due to the COVID-19 pandemic, you may have a right to temporarily pause or reduce your monthly mortgage payments through a forbearance. Servicers also may not be allowed to foreclose on your home. via @Consumer Financial Protection Bureau consumerfinance.gov/housing.
If you are behind on your mortgage due to the COVID-19 pandemic, beware of mortgage relief scams. There are free relief options that can pause or reduce your monthly mortgage payments and stop a foreclosure. If anyone tries to charge you in advance for help or guarantees that they can stop your foreclosure, they’re not legitimate. via @Consumer Financial Protection Bureau consumerfinance.gov/housing.
Thank you for your help in spreading the word. For more resources for you and your clients, we have tools and programs that encourage financial education and capability from childhood through retirement.
Thank you,
Consumer Financial Protection Bureau
MUSINGS BY DIANE:
It is not enough that COVID has forced us to cut ourselves off from our family and friends (at least those who really care about their family and friends), but now con-artists have decided to scam homeowners who are having problems paying for their home during COVID. It is a fact that bad events bring out bad actors. After a tornado or other disaster thieves hit the streets ready to take naive homeowner’s insurance proceeds that are supposed to be used for repairing the house. Or some creep offers a miraculous cure for a deadly disease such as COVID or cancer (such as drinking bleach or some other crack-pot idea). All you have to do is give them your life savings.
Be very cautious when relying on advice from someone who stands to make money from your ignorance. Research, research and then research some more in order to find the truth. NEVER assume the best answer is on the Internet. Instead, talking with a professional who is experienced in the relevant area is your best option. The last step is to trust yourself – if it sounds to good to be true – then it is.
– Diane L. Drain
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
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