How to Avoid Foreclosure Scams

    If you fall behind on your mortgage payments, it is very common to receive telephone calls, home visits, and direct mail from a foreclosure
    "rescue" service. Scam artists often target defendants named in public records. The scam artists usually assert that they are “foreclosure
    specialists” or “mortgage specialists,” claiming they will save your home from foreclosure in exchange for a sum of money.

    Unfortunately, many people pay the scam artist, but find out months later that the company has done nothing to stop the foreclosure, and
    the house is set to be sold at a sheriff’s sale. Don’t let this happen to you!

    Watch out for handwritten notes that refer to the details of your situation, services telling you not to contact your mortgage servicer,
    services promising to save your house, and large deposits required upfront.

    Tips to Avoid Foreclosure Rescue Scams

    •Contact your mortgage servicer as soon as you have trouble making payments. You may be able to negotiate a payment schedule.
    •Contact a HUD-approved housing counselor for assistance if you are receiving letters threatening foreclosure and are not yet in a                
    lawsuit.
    •Contact Ohio State Legal Services or the Ohio State Bar Association to find an attorney to represent you if you have a pending lawsuit
    against you.
    •Get detailed information about the deadlines you face in resolving your problems. Pay special attention to the date on which you would lose
    legal right to ownership of your home.
    •Be wary of any claim to stop foreclosure for a fee. Do not make a down payment upfront, and always ask for written information before you
    make a financial decision.
    •Never make your mortgage payments to anyone other than your mortgage servicer. If you can't pay, contact your servicer immediately to
    work out payment arrangements.
    •Take your time and never sign a contract under pressure. Consult a lawyer or trusted family member before you sign.
    •Get all promises in writing. Many scam artists make lofty verbal promises but never put them in writing. Always make sure oral agreements
    are included in a written contract; otherwise    they are not guaranteed.
    •Check companies’ reputations before doing business, by researching their reputations with the Better Business Bureau and the Ohio
    Attorney General’s Office to see if other consumers have filed complaints against them.
    •Never sign away ownership of your home without consulting a lawyer. Be especially suspicious of offers to lease back your home, in order
    to buy it back over time, and beware of any home-sale contract in which you are not formally released from liability for your mortgage. Make
    sure you know the rights you are giving up and that you agree to give them up.
    •Don't sign anything with blank lines or spaces, as information could be added later without your knowledge and consent.
    •If you do not speak English, never use a "rescuer's" translator. Instead, insist on using your own translator.

    Sources: BankRate.com, HUD, The National Consumer Law Center, Ohio Attorney General
Avoid Foreclosure Scams
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