Reports of mortgage foreclosure scams are on the rise. Foreclosure scam artists are using a variety of means to reach out to potential victims, including the Internet, phone calls, direct mail, and door-to-door solicitations. For families who are struggling to remain in their homes, it’s vital to know what to watch for and where to turn for help. Fortunately, legitimate housing counselors and other resources are available at no or low cost to assist homeowners who have fallen behind on their mortgage payments. The Federal Reserve Board has compiled the following list of tips to help protect homeowners from costly foreclosure scams. Please share these tips with your clients, contacts, and community partners.
- Work only with a nonprofit, HUD-approved housing counselor. For a list of certified counselors, visit http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm or call 877-HUD-1515 (877-483-1515). If the name of the organization you are working with isn’t on the list, then switch to one that is.
- Don’t pay an arm and a leg. Most housing counselors provide no- or low-cost counseling services. You should not have to pay hundreds or thousands of dollars for assistance.
- Be wary of “guarantees.” No one can ensure you good results.
- Know what you are signing. Don’t let a counselor pressure you into signing paperwork you haven’t had a chance to read thoroughly or don’t understand.
- If it sounds too good to be true, it probably is.
- If you feel you are a victim of foreclosure fraud, trust your instincts and ask for help. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Consumer Action Website athttp://www.consumeraction.gov/.
Additional information about avoiding foreclosure scams may be found on the Federal Reserve Board’s website at http://federalreserve.gov/pubs/foreclosurescamtips/default.htm.
