GovCentral

Avoid Foreclosure Rescue Scams

A few weeks ago, I wrote a post about avoiding mortgage foreclosure. I know that topic resonated with a lot of folks. In addition to other worries, homeowners must now be more guarded than ever against foreclosure rescue scams. The fear of losing their homes can make even the savviest consumers susceptible.

The Federal Trade Commission and the Office of the Comptroller of the Currency both provide general descriptions of the most common foreclosure rescue scams:

• Lease-back or repurchase scams happen when someone offers to pay your mortgage and rent your home back to you. This scheme often involves signing over your deed to a con artist.
• Refinance Fraud occurs when people pose as mortgage brokers and offer to refinance your loan so you can afford the payments. Con artists may trick you into signing over the ownership of your home by saying that you are signing documents for a new loan.
• Bankruptcy Schemes attempt to abuse the bankruptcy laws. The con artist may even file a bankruptcy case in your name, without your knowledge.

Here are some general tips to help you avoid these scams:

• Read and understand everything you sign.
• Don’t sign blank or partially completed documents.
• Make payments directly to your lender or mortgage provider.
• Contact your lender directly to discuss payments and options.
• Never sign over the deed to your house without consulting a lawyer.
• Report suspicious activity to the FTC or your state consumer protection office.

For more information about housing, visit the USA.gov Homes and Housing Page. Do you have any other tips for avoiding foreclosure scams?

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