NeighborWorks America is launching a campaign to alert homeowners to the dangers of foreclosure and loan modification scams. When consumers are struggling to make their mortgage payments they should be starting by talking directly with a lender. Instead, many are caught up by the hundreds of scam artists who prey on unsuspecting borrowers. Consumers have lost money, ruined their credit and sometimes lost their homes due to the false promises of these companies.
Here are the Top Ten Tips put together by the Loan Modification Scam Alert (http://www.loanscamalert.org/) campaign to help homeowners seeking foreclosure prevention assistance this year:
1. Contact your lender first as soon as you get concerned about paying your mortgage.
2. Determine your options by speaking to your lender's loss mitigation department.
3. Be patient but persistent with your lender, because getting a loan modification takes time.
4. Call the Homeowner's HOPE Hotline at 1-888-995-HOPE. Trained counselors are available 24 hours a day to provide assistance in multiple languages.
5. Connect with a local HUD-approved counseling agency for free by calling 1-888-995-HOPE or visiting www.LoanScamAlert.org.
6. Beware of loan modification scams. Some companies and individuals are out to take advantage of homeowners seeking loan modifications.
7. Avoid anyone who asks for a fee prior to providing any loan modification service, including companies, individuals and even some lawyers.
8. Avoid anyone who guarantees to get your loan modified or stop a foreclosure, because nobody has the power to make this promise.
9. Avoid companies that tell you to stop paying your mortgage and to pay them instead. This is a sure sign of a loan modification scam.
10. Report loan modification or foreclosure scams at any time by visiting www.LoanScamAlert.org or calling 1-888-995-HOPE (4673).
Written by Michele Lerner
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