The problems to pay the mortgage have increased during the last months. In March of this year alone, 22,360 properties in the United States began their foreclosure process, which implies an increase of 248% compared to the corresponding figure for March 2021, according to data compiled by Attom Data. And in this context, There are not a few people who fall for scams due to desperation, in order to relieve their debts.
At SoloDinero we explain how to avoid falling for fraud and tricks by scammers who promise to relieve your debts and, on the contrary, they could significantly worsen your financial situation.
How to identify scams that promise to relieve your mortgage debt?
According to the US Federal Trade Commission, the The modus operandi of scammers who promise to relieve your mortgage debt is to offer loan modifications so you can keep your home.
However, for this operation, scammers will ask for advance paymentswhich is illegal under the Mortgage Relief Assistance Services (Mars) rule, which makes it illegal for a company to charge before giving you a written offer from your lender stating record the loan modification.
In the event that you decide to accept your lender’s offer, the debt relief company must provide you with a document that lists all the loan modifications; the charges they will charge for their services are indicated; and it is made explicit that you could lose your home if you stop paying your mortgage, in addition to the fact that your credit history will be affected.
On the other hand, a legitimate debt relief company will never recommend stopping mortgage paymentsbecause by doing this they would be breaking the law.
What are the most common types of mortgage debt relief scams?
In addition to advance payments, Mortgage debt relief scammers often pressure their victims to make the respective disbursements (which, we repeat, are illegal) through cashier’s checks or transfers, in order to make it difficult for the scammed person to recover their money.
Another of the most common scam maneuvers is to try to convince the victim, the homeowner to transfer the deed to their home to the scammersin order to “protect” the property.
Some of the most common types of scams are:
1) False Advice
Scammers posing as bogus “advisors” present themselves as housing counselors or consultants, or as attorneys working for legitimate law firms or even the government. Once the respective introductions have been made, These types of scammers may ask their victims not to contact their mortgage servicers or other attorneys, and ask that fees be paid directly to them.
Once the operation has been carried out, they will disappear and your loan will become delinquent or unpaid.
2) Fake forensic audits
These types of scammers present themselves as experts in foreclosure prevention, and that they will be able to modify your loan through audits of mortgage documents. However, the truth is that no firm can promise such a scenario, because even in the hypothetical case that you sue your lender, they are not required to modify the terms of your loan to make your payments more affordable.
3) Rent-to-Repurchase Scams
Con artists who carry out this type of fraud trick their victims into handing over the deeds of ownership of the home, in order to take control of what happens in the property. Once they do this, they can sell the house, keeping the money from the sale and even the money you already paid for the mortgage loan.
It should be noted that in this case, the victim not only loses their home, but remains liable for the unpaid mortgage.
Where can I go for legitimate help with mortgage debt relief?
The US Federal Trade Commission recommends contacting your mortgage servicer immediately if you are having trouble paying your mortgage or if you have received a notice of foreclosure.
You can also apply for help from the Department of Housing and Urban Development’s (HUD) list of approved housing counseling agencies. Clicking on this linkyou can review the agency that is most convenient for you.
On the other hand, on the website of the Department of the Treasury and HUD, MakingHomeAffordable.govyou can apply for help if you are having trouble paying off your mortgage payments.
Finally, visit the websites of federal entities designed to help American consumers, such as the Consumer Financial Protection Bureau (CFPB)), the Federal Housing Finance Agency (FHFA) and of Department of Housing and Urban Development (HUD).
What to do if I fell victim to a scammer who promised to relieve my mortgage debt?
The best thing in these cases is to act as soon as possible. Yes you paid by credit or debit card, or even a transfer, you can report a fraudulent charge to the bankin order to check if it is possible for them to reverse the transaction.
Additionally, you can report the scammer to the Federal Trade Commission at the link ReporteFraude.ftc.gov and with the attorney general’s office in the state where you reside.
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