How to Avoid Becoming the Victim of a Mortgage Scam

How to Avoid Becoming the Victim of a Mortgage Scam

In a previous article, we told you about the common mortgage scams that have been going around for year. Here are some ways to prevent yourself from becoming a victim of one of these scams.

Mortgage scams are running rampant these days with desperate home buyers and people looking for an easy way to get financial help with their mortgage. But most people wind up worse off than they were before when they try one of these routes because they are often scammed. Mortgage scammers prey on the elderly and people who don’t speak English very well because it is easier to scam them. Here are some tips to help yourself not become a victim.

  • Talk to your lender at the first sign of trouble. In almost every situation, your lender will try to work with you to help you through your mortgage troubles. With all of the foreclosures on the market, your lender does not want to foreclose on another home that will sit on their books without making money for a year or two to come. Try to work out a payment plan or some other plan with your lender before you do anything else.
  • Know the laws in your state. Foreclosure laws differ from state to state. So if you think you are in danger of foreclosure, find out how much time you have before you actually get evicted. You may be able to work something out before that date arrives rather than enlisting the help of a third party and getting scammed out of your home and you money.
  • Always keep in touch with your lender when financial problems arise. Many homeowners ignore the problem until it overwhelms them and then they start looking for desperate ways to help their situation. This very often leads to getting scammed. Never ignore your mortgage problems because they won’t just go away.
  • Consider a HUD-approved counseling agency. A qualified and certified counseling agency can often work on your behalf and help you get through your financial problems without losing your home. Never go to an agency that is not approved by HUD or one that seems too anxious to help. And it’s almost never a good idea to use a counseling agency that contacts you rather than one that you contact yourself.
  • Never sign anything without reading it and understanding it first. Even if the person tells you what the paperwork says, take the time to read it. If you have to take it home and let someone else read it as well, that’s a good idea. Making hasty decision never ends good and you could be signing something that gives up ownership of your home if you are not careful.
  • Only make payments to your lender. Some scams going around ask you to pay a third party who then pays the lender for you. Most of the time, the third party keeps your payment and you might not even know it until you receive your foreclosure notice.

The best thing to do when you fall into financial troubles and you can't pay your mortgage is to take a deep breath, look at your options, speak with your lender and read everything before you sign it. This will help you avoid becoming another victim of a mortgage scam.

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