Usual Signs of A Scam

It is critical to be aware of the predatory scam and foreclosure rescue companies. These companies prey upon emotional, distressed homeowners. They claim to provide quick help to homeowners when majority of the time they only exist to take advantage of you.

Do not fall victim to these criminals.

Be wary of any companies that display or express any of the following:

• 100% Money Back Guaranteed
• Guaranteed Loan Modifications (A modification cannot be guaranteed)
• Attorney based modification (Most of these firms do not have attorneys on staff. An attorney needs to have a clear scope of services with his/her client. If there is truly an attorney involved, you should be talking to the attorney directly and be represented by the attorney, not speaking with a sales person)
• Extremely large or small fees
• Advance fees paid directly to the firm (Your money should be held in a safe, secured location where the funds are not earned by the firm until all obligations have been met. The location should be a neutral, 3rd party that has no interest in the transaction, i.e. Escrow Account or Trust Account)
• Vague or unclear contracts (In the contract, there should be a clear, defined scope of services. The contract should outline exactly what the firm will provide for you. Also, the contract should clearly state the procedures to cancel and be in a large enough font easily to read)
• Quit Claim Deeds or Warranty Deeds (Do not sign any Quit Claim Deed or Warranty Deed releasing your interest in the property. The firm is only after your equity in the property. A Quit Claim Deed or Warranty Deed is NOT required to perform a loan modification)
• Power of Attorney (Do not give anyone Power of Attorney). It is NOT required to perform a loan modification
• Backed by the Better Business Bureau-BBB (The loan modification industry is not a regulated industry. In majority of the United States, the Better Business Bureau has stated they will not accredit loan modification companies)
• Forensic Loan Audit (Be careful of this approach. The goal of a forensic loan audit is to achieve rescission from the Mortgage Servicer. If you win the case, the Mortgage Servicer could agree to rescission and return the funds you have previously paid the servicer. Then, the servicer could call the note due on the property. This is not a great situation when you owe $200,000 on your property that is only worth $150,000)