Identify and Avoid Foreclosure Prevention Scams

With the large number of families struggling to make ends meet these days and falling behind on their mortgage payments, a number of scams have entered the market.  Nothing saddens me more than to meet a family that has been hurt by a foreclosure scheme.  Foreclosure prevention scams come in many different varieties. However, there are some general red flags to look for to help you determine whether or not the individual or company you are dealing with is a scam:

1. You are asked to pay an up-front fee for help working with your lender. Too often, unscrupulous individuals or companies seek to charge homeowners an upfront fee then do little or nothing to help prevent the foreclosure. Beware of foreclosure rescue scams that require you to pay a fee for assistance with your mortgage situation.

2. You are advised to make your mortgage payments to someone other than your mortgage company. Never send a mortgage payment to anyone other than your mortgage company. If you are having trouble making your mortgage payments, you should communicate with  your mortgage company

3. A company/person guarantees they can prevent a foreclosure. Nobody can guarantee they will prevent a foreclosure.  The only way to guarantee foreclosure prevention is to bring the mortgage current.  Any other solution will require your mortgage servicer and mortgage investor must approve a work out solution. Legitimate, trustworthy agencies can only work to do everything possible to prevent the foreclosure and persuade your mortgage servicer and mortgage investor to approve a work out solution for you.

4. You are pressured into signing any paperwork that you haven’t had a chance to read, or you don’t fully understand. Never sign a document before you had a chance to read and fully understand it. If you have any doubts whether or not the paperwork you are being asked to sign is legitimate, ask to have it reviewed by an attorney.

5. You are asked to release personal financial information online or over the phone. You should only give this type of information to your lender or companies that you know and trust.

How May I Help You

I will meet with you face-to-face to talk about your situation and help you understand what options and programs are available to you. I can explain what documents you will need to provide to your mortgage company, and in many cases, will handle the entire process of working with your mortgage company for you.

Free Assistance

There is never any charge for the assistance my team provides. We have helped hundreds of families deal with the possibility of foreclosure. We provide homeowners an advocate, with countless hours of consultation, training, and assistance, as well as processing and negotiating with their mortgage companies.

Before We Meet

Make sure you have all of the decision makers regarding your mortgage and finances present at the appointment. Also, begin gathering the documentation listed below that will be needed to submit to your mortgage company.

Document Checklist

•  Financial Information Form
• Monthly statement(s) or information for all mortgages and liens against the property including:
  • Mortgage/lien holder company name
  • Account number
  • Balance and monthly payment
  • Contact information
  • Hardship Letter explaining your circumstances
  • Last two years of income tax returns
  • Last two months bank statements
  • Last two paycheck stubs

If you do not have any of the items listed above, a written statement explaining why you don’t have them will be okay.

How to Contact Us

We are available to help.

Whether you just need some simple guidance on how to deal with your lender or need to know if a short sale or foreclosure is best for you.

We can help.

Scott Ivey

Realtor, Connect Realty Team Leader & Associate #3015

(916) 283-7956 Direct

(888) 887-3528 Fax

Schedule time with me: meetme.so/scottivey

Subscribe to Scott Ivey’s Blog Updates by Email

DRE: 01438657