Avoid Mortgage Scams

The California Department of Real Estate issued a mortgage fraud warning to consumers.

The department is advising consumers look out for mortgage relief, loan modifications, and foreclosure rescue scams perpetrated by fraudsters on financially strapped homeowners.

One prominent tactic used by scamsters and third-party operators is to ask for an up-front fee from homeowners in exchange for promised reduced monthly mortgage payments. When the fee is paid, the con artists do little or nothing for the homeowner.

It is not necessary for consumers to use third-party operators, because they may not enhance a homeowner’s ability to obtain a payment modification.  They might actually hurt their chances of working with the homeowner’s mortgage servicer, said the California Association of Realtors.

Any ads that claim to “stop foreclosure now” and offer “money-back guarantees,” should be considered with caution, the association said.

Third-party fraudsters scan foreclosure notices in public filings and the news media to locate potential victims, according to the Federal Trade Commission.

Advertisements

Tags: , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s


%d bloggers like this: