“Foreclosure rescue" companies help banks take your home

With foreclosures consistently on the rise so are the scams, tricks, and get rich quick at your expense schemes. In other words, the slimy mortgage 'brokers' who created the current housing crisis by using straw buyers to originate fraudulent loans, turning the Stated Income Loan into the 'liars loan', and using any other unscrupulous/fraudulent tactic to 'get rich quick' have now infiltrated the foreclosure prevention industry.

Unfortunately, their decision to assist homeowners in trouble is not due to a guilty conscience or any other altruistic motive; it's to get rich quick by preying on the desperation of homeowners currently facing foreclosure. However, the old saying rings true "If it sounds too good to be true; it probably is!" Facing the immediate possibility of losing your home is a traumatic, emotionally draining, and depressing experience; yet, homeowners should keep in mind they have a better chance of saving their homes on their own than forking over thousands of dollars in cash to someone who claims to be a "foreclosure prevention specialist"; "mortgage loan auditor" or; "loan modification specialist". If you are a homeowner currently facing foreclosure or looking arrange a mortgage loan modification and you are currently working with a 'foreclosure prevention specialist' or thinking of working with one, here are some of the red flags to look for that indicate the assistance promised by the individual or organization is probably a scam:

1. Upfront fees for the promise of a loan modification of your current mortgage;
   
2. Any request for payment by someone who is not an attorney prior to providing the service;
   
3. Boilerplate and/or generic QWR 'Qualified Written Request' letters that contain no specific facts relative to your situation ;
   
4. Instruction to stop paying your mortgage to convince the bank to do a 'hardship' loan modification of your mortgage;
   
5. Advertising claims of having a 90 percent to 100 percent success rate modifying home loans;
   
6. Claiming to be "licensed" by a government agency with no visible proof of the license, and/or;
   
7. No records of incorporation in your state;
   
8. 'Specialist' has no verifiable license to engage in financial transactions; *remember a loan modification is technically a mortgage loan origination therefore the individual drafting the documentation should be a licensed professional
   
9. Claims they are affiliated with "legal experts" but no attorney is handling your case file nor have you spoken with one.
   

Homeowners who are facing foreclosures should contact their mortgage servicer to immediately explore what resources are available to them; contact community organizations for referrals to legitimate non-profit foreclosure prevention organizations and; contact the state bar and request a referral to a consumer advocate or real estate attorney in your area. or a government-approved housing counselor.

If you believe you are the victim of a 'foreclosure prevention' scam contact the bar association in your state regarding filing a complaint against the individual(s) involved for engaging in the unauthorized practice of law. In addition, look into filing a complaint with the Attorney General in your state as well as the Department of Justice against the individual(s) and organization involved in the scam; both complaints can be filed online.

Remember 'Caveat Emptor!' Buyer beware!