5 Tips to Identify Mortgage Relief Scams

Posted on 20 June 2009

As the housing crisis continues, companies promising help with mortgage modification and foreclosure relief have been rapidly increased throughout the country. But in reality many of these firms have established with an intention to deceive people. There aim is to scam people who are already in distress.


Below we have given you few tips on how to spot a potential scam, from the National Endowment for Financial Education:

1.You should always be suspicious of unrequested mail


Watch out for letters that resembles government forms or bear logos that are identical to the government seals. Search out misspelled words, language that includes extreme warnings and references to government programs which according to them you can’t access without their help.

2. Carefully inspect web sites before submitting information

Law enforcement has accused some companies that have been setting up sites that mimic official government sites, which end with “.gov.” Some companies’ sets up such scams that try to confuse consumers by using such kind of addresses that include a dash or slash in front of “gov” or end in .us, or they may use such names that sounds like legitimate programs.

You should also check out the sections that has the title of “Who we are” or “About us” in which the description of the company is given, and also read its privacy policy. If the website has no such description about the company then, it’s not likely a trustworthy company.

3. Search for other red flags

You should consider such sites as suspects that contain only a page where you have to fill out personal information and submit it for a referral. You should also be doubtful about the use of magazine, newspaper and TV logos; the only meaning of this is that the company paid for advertising with those outlets. And you should also have questions about the promises to do things like put a “team of attorneys” on your case.

4. Walk away from any attempt to collect fees

In addition to all these things you should also, avoid any such promises for a “free consultation” or a “money back guarantee,” which advocates say is a tip-off there’s going to be a fee. In order to provide free help for distressed homeowners non-profit organizations work with government agencies.

5. Check for complaints against the company

You should check that are there any complaints made by anyone against the particular company. For this purpose you may contact your state consumer affairs or attorney general’s office, and with the Better Business Bureau.

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- who has written 328 posts on Loan Mortgage Credit!.

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3 Responses to “5 Tips to Identify Mortgage Relief Scams”

  1. John says:

    I just feel that the foreclosures across the nation are getting out of hand. My neighborhood has had several foreclosures in the past year and there lawns are now dead with weeds growing everywhere there is dirt. This does not just effect the person who lost there home but also the people in the neighborhood who are stuck next to there home.

    I was under the impression that Obama’s plan was suppose to help these people keep their homes. I almost feel that the bail out on the banks has made them stingier. I feel like you can not even get a loan modification on your own now. I found the best way was to find somewhere with an on staff attorney to fight the bank for you.

    My friend recently used http://www.Carrotpeel.com and said they did a great job for him in lowering his monthly payments.

    Even though some are getting out of this mess I still feel like the banks need to be more helpful because even when a home is foreclosed the banks don’t know how to turn around and sell it because they are in the banking business not in the real estate business.

  2. Afflicter says:

    The Federal Trade Commission and several state attorneys general announced lawsuits yesterday against four loan mod companies as part of a crackdown on mortgage scams. Your advice appears to be on target. All four of the companies sued were said to be trying to collect upfront fees, which generally violates state laws. One of the companies allegedly tried to get around this by having a lawyer on staff, since attorneys can charge up front fees. The details are here: http://www.ftc.gov/opa/2009/07/loanlies.shtm.

  3. R. MAK. says:

    Thanks for news and link

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