"Steer Clear of Scams"

1. “Pay us $1,000, and we’ll save your home.”

     Some legitimate housing counselors may charge small fees, but fees that amount to
     Thousands of dollars are sign of potential fraud especially if they are charged upfront.

2. “I guarantee I will save your home – trust me.”

     Beware of guarantees. Unrealistic promises are a sign that the person making them has
     not considered your specific circumstances.

3. “Sign over your home, and we’ll let you stay in it.”

      Be very suspicious if someone offers to pay your mortgage and rent your home back
      to you inexchange for transferring the title. Signing over the deed gives another person
      the power to evict you, raise your rent or sell the house.

4. “Stop paying your mortgage.”

     Do not trust anyone who tells you to stop making payments to your lender and servicer,
     even if that person says it will be done for you.

5. “If your lender calls, don’t talk to them.”

      Your lender should be your first point of contact for negotiating a repayment plan,
      modification, or short sale.

6. “Your lender never had the legal authority to make a loan.” 

      Do not listen to anyone who claims that “secret laws” or “secret information”
      will be used to eliminate your debt and have your mortgage contract declared invalid.

7. “Just sign this now; we’ll fill in the blanks later.”  

     Take the time to read and understand anything you sign. Never let anyone else fill out
     paperwork for you. Don’t let anyone pressure you into signing anything that you don’t
     agree with or understand.

8. “Call 1-800-Fed-Loan.”
      

       Some companies trick borrowers into believing that they
       are affiliated with or are approved by the government or tell you that you must pay
       them high fees to qualify for government loan modification programs.

9. “File for bankruptcy and keep your home.” 

      Filing bankruptcy only temporarily stops foreclosure. If your mortgage payments
      are not made, the bankruptcy court will eventually allow your lender to foreclose on your
      home.

10. “Why haven’t you replied to our offer?  

      "Do you want to live on the streets?”    High-pressure tactics signal trouble. 

Your best bet for making sure that scam artists don’t end up with your shirt as well as your house: Contact a Certified Distressed Property Expert©. CDPE agents are tapped into scams as they emerge and committed to keeping clients connected to legitimate solutions.

© 2011 Distressed Property Institute, LLC All Rights Reserved. The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.