Foreclosure Scam tips

Tips on Avoiding Foreclosures, Delinquencies and "Foreclosure Rescue" Scams

If you are facing a mortgage payment that you cannot make or if you have fallen behind on your mortgage payments, the first step you should take is to contact your lending company directly.

Please do not ignore the letters or phone calls from your lender. Foreclosure on a mortgage and the loss of a home is an expensive process. The longer you wait to make the call, the fewer options you will have.

Going through the foreclosure prevention process can be complicated and you do not have to do it alone. There are legitimate organizations such as Non-Profit Housing or Credit Counseling Agencies that can help you with the following:

• Analyze your situation
• Go over your options
• Prioritize your debts
• Prepare information for your lender

For a list of HUD –U. S. Department of Housing and Urban Development approved housing counselors, please visit http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm or call (800) 569-4287.
Remember! Counseling services are usually free or require a small fee.

The following links provide information that may assist you.


Consumers

• Miami Herald Article: Red Flags for a Possible Mortgage Fraud Transaction
• The Department of Housing and Urban Development maintains a list of counselors approved to provide homeownership counseling.
• Florida’s Attorney General also offers assistance in choosing a credit counselor.
• ACORN (Association of Community Organizations for Reform Now)
• Borrowers in trouble may get some relief
• Bankrate.com: Avoiding Foreclosure

Industry

• CSBS/AARMR Guidance On Nontraditional Mortgage Product Risks
• Federal Agency Guidance Database
• FDIC: Statement on Working with Mortgage Borrowers
• HUD Pushes Mortgage Lenders To Avoid Foreclosure Losses
• U.S. Senate, Committee on Banking, Housing, and Urban Affairs urges the Board of Governors of the Federal Reserve System to exercise its authority under the Home Ownership and Equity Protection Act (HOEPA) to prohibit unfair, deceptive, or abusive lending practices not in the interest of the borrower.
• 2006->Chapter 494->Part IV" target=_blank>Provisions of the Florida Fair Lending Act, Sections 494.0078-494.0097, Florida Statutes, prohibit a number of predatory lending practices and apply to any person who makes a high-cost home loan or acts as a mortgage broker or lender.

Tips For Consumers On Avoiding Foreclosure “Rescue” Scams

Many Americans who have fallen behind on their mortgage payments are being targeted for so-called foreclosure “rescue” or “prevention “scams.

If you are facing foreclosure you should be wary of solicitations that offer to assist you in stopping or preventing foreclosure. If the assistance sounds too good to be true or if it sounds too simple, it usually is. You should be cautious before agreeing to or signing anything from someone other than your lender or servicer, which states they can assist you in preventing or stopping a foreclosure.

What is a Foreclosure “Rescue” Scam?
Simply put - it is where a company or person promises to help save your home from foreclosure, but is actually intent on stealing your home or most of the equity you have accumulated in your home.

There are several types of Foreclosure Rescue Scams you should be aware of:

• Foreclosure Prevention Specialist – phony foreclosure counselors.
• Phantom Help - charges high fees for work the homeowner could do themselves.
• Lease/Buy Back – homeowners are deceived into signing over the deed to their home.
• False Bailout – the homeowner is lead to believe that they can rent their home from the new owners and eventually repurchase the home.
• Bait and Switch - the homeowner thinks they are signing new mortgage documents, but are actually signing over the deed to their home.

Visit the following links for more information on Foreclosure “Rescue” Scams and how to avoid becoming a victim.

• National Consumer Law Center, Inc.’s Tips For Consumers On Avoiding Foreclosure “Rescue” Scams.
• Freddie Mac: Avoiding Foreclosure and Beware of Scam Artists
• HUD: How to Avoid Foreclosure and Foreclosure Prevention Companies
• Federal Trade Commission: Mortgage Payments Sending You Reeling? Here’s What to Do - Be Alert to Scams
• Organizations, like the Center for Foreclosure Solutions, help borrowers avoid foreclosure and help financially stressed borrowers avoid predatory foreclosure rescue scams.

The information above was obtained from the
Florida Office of Financial Regulation
200 East Gaines Street · Tallahassee, FL 32399 Website