Avoid Foreclosure

Avoid Scams

Avoid foreclosure specialist
How to Avoid Foreclosure Rescue Scams
Avoid Scams in the Foreclosure Process

Avoid Foreclosure Rescue Scams

People in foreclosure are frequently targeted for “foreclosure rescue scams.” Be very careful of non-lawyers who ask you to pay a fee for a counseling service, modification of an existing loan, or foreclosure prevention, or claim to be able to perform a “forensic audit” of your loan documents, regardless of their promises or claims. Many out-of-state attorneys target Connecticut residents: you should never pay attorneys that you do not meet. For more information, see Mortgage Relief Scams from the FTC and the CFPB's How to Spot and Avoid Foreclosure Relief Scams.

Con Artists will try to steal a home

Be skeptical of unsolicited offers-Research the company or individual-Seek HUD-approved counseling
Be skeptical of unsolicited offers: Be cautious of anyone who contacts you unexpectedly, promising to save your home from foreclosure. Legitimate help will never contact you without your request. Research the company or individual: Before working with a company or individual, research their reputation, credentials, and experience. Check for any complaints or negative reviews online. Seek HUD-approved counseling: Reach out to a HUD-approved housing counselor for free or low-cost advice on foreclosure prevention options. These counselors are trained and certified by the U.S. Department of Housing and Urban Development (HUD).

Turn to a HUD-approved housing counselor

Verify credentials-Read and understand all documents-Beware of upfront fees
Verify credentials: If you decide to work with a lawyer, verify their credentials with your state’s bar association. Make sure they are licensed to practice law in your state and have experience in foreclosure prevention.
Read and understand all documents: Never sign any documents without fully understanding their content and implications. If you are unsure about anything, consult with a trusted advisor or attorney before signing.
Beware of upfront fees: Be cautious of anyone who demands payment upfront for foreclosure prevention services. It is illegal in many states for companies to charge upfront fees for these services.

Homeowners are deceived by scammers

Get everything in writing-Be cautious of power of attorney requests-Avoid signing over the deed
Get everything in writing: Make sure to have a written agreement detailing the terms and conditions of any service provided, and keep a copy for your records. This can help protect you from any misunderstandings or misrepresentations.
Be cautious of power of attorney requests: Avoid signing over your power of attorney to someone without consulting a trusted advisor or attorney. Scammers may use this to take control of your property or financial decisions.
Avoid signing over the deed: Never sign over the deed to your home without consulting a trusted advisor or attorney. Scammers often use this tactic to gain control of your property and ultimately evict you from your home.

Report scams

Report scams-Communicate with your lender-Work with a trusted professional Realtor-The bait-and-switch: Homeowners think they are signing documents to bring the mortgage current. Instead, they are signing over the deed to their home. Homeowners usually don’t know they’ve been scammed until they get an eviction notice.
Communicate with your lender: Keep in touch with your mortgage lender and discuss your situation with them. They may be able to offer alternative solutions to help you avoid foreclosure.
Report scams: If you suspect you have been targeted or victimized by a foreclosure rescue scam, report it to your state attorney general’s office, the Federal Trade Commission (FTC), or the Consumer Financial Protection Bureau (CFPB).

Protect yourself from falling victim

By being cautious, researching potential help, and staying informed about your options, you can better protect yourself from falling victim to foreclosure rescue scams. Reach out to legitimate resources like HUD-approved counselors, trusted advisors, and attorneys to help you navigate the foreclosure process safely.
By being cautious, researching potential help, and staying informed about your options, you can better protect yourself from falling victim to foreclosure rescue scams. Reach out to legitimate resources like HUD-approved counselors, trusted advisors, and attorneys to help you navigate the foreclosure process safely.
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