Loan Modification Scams
The scammers, an individual, company and sometimes even a law firm makes exaggerated claims that they can get the homeowner a loan modification with guaranteed lower interest rates. Typically, the scammer will demand a substantial upfront fee or, worse set up an automatic withdrawal
from the homeowner’s bank account. Scammers often collect loan documents from the homeowner and may even promise to appear in court on behalf of the homeowner. However, in most cases the scammer will do neither. These scams not only cost homeowners thousands of dollars, but actually harm the homeowner
Short Sale Scams
A legitimate short sale is an option for homeowners to avoid any further liability for their mortgage debt. It requires the home owner with the assistance of a reputable and licensed real estate broker and an attorney to negotiate with the bank to get approval to sell the property below what is owed on the mortgage. By contrast, scammers will induce or trick a homeowner to sign over the deed to their home by falsely claiming to resolve their foreclosure action or mortgage debt. Unfortunately, homeowners learn subsequently that the scammer did neither assume or satisfied the mortgage, leaving the homeowner responsible for the unpaid mortgage debt. Homeowners are strongly advised to never sign any documents without reading them and, preferably consulting with an attorney.