In November 2010 the Federal Trade Commission (FTC) offers protection for distressed homeowner against scammers with Mortgage Assistance Relief Services. If you are a struggling homeowner who has received tempting phone calls or have seen commercials to pay off the rest of your mortgage for a small fee, then you could have been a victim of a scam like the other hundred million dollars from thousands of victimized homeowners (Federal Trade Commission).
A major red flag for struggling owners are companies requesting money up front in order for them to do their loan modification and promising results that do not fall through. Knowledge is power and look for disclaimers from people who are claiming to “help” you.
Don’t be taken advantage and look out for some of the common trends of victims
- Guaranteeing results
- Requiring up front fees for loan modifications and short sales when work has not been completed
- Not allowing you to cancel during the transaction, especially if you do not agree to the lenders terms
- Not clarifying if they are with a government agency
- Telling you to stop paying your monthly mortgage
- Not mentioning that your credit will be affected
If you feel that you have been taking advantage of contact the FTC or check out more information here.