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Beware of Scams - Don’t be a Victim

Red Flags

If you are looking for foreclosure prevention help, beware of any business that:

• guarantees to stop the foreclosure process – no matter what your circumstances
• offers to make your loan more affordable and help you avoid foreclosure instructs you not to contact your lender, lawyer, or credit or housing counselor
• attempts to collect a fee before providing you with any services
• accepts payment only by cashier’s check or wire transfer
• encourages you to lease your home so you can buy it back over time
• tells you to make your mortgage payments directly to it, rather than your lender
• tells you to transfer your property deed or title to it
• offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale
• offers to fill out paperwork for you
• pressures you to sign paperwork you have not had a chance to read thoroughly or that you don’t understand
  

CALL YOUR MORTGAGE COMPANY/SERVICER IF YOU KNOW YOU’LL BE LATE AND ALWAYS RETURN THEIR CALLS!!

How Scams Work

Foreclosure “rescue” firms and loan modification companies are plentiful these days. Their goal is to make a quick profit, and they will use half-truths, and outright lies to sell services that promise relief, and then fail to deliver.

Potential victims are easy to find. Foreclosure “rescue” professionals use a variety of tactics to find homeowners in distress from foreclosure postings in the newspaper and on the Internet or through public files at local government offices. Other approaches include ads on the Internet, on television, or in the newspaper, posters on telephone poles and bus stops. They can also send out personalized letters to the homeowners and post signs in the neighborhood.

The scam artists use simple and straight-forward messages, like:

“Stop Foreclosure Now!”

“We guarantee to stop your foreclosure”

“Keep your Home. We know your home is scheduled to be sold. No Problem!”

We have special relationships within many banks that can speed up case approvals”

“We Can Save Your Home. Guaranteed. Free Consultation”

“We stop foreclosures every day. Our team of professionals can stop yours this week!”

In reality, they cannot deliver or guarantee that you will be helped and should be avoided. They encourage the homeowner to stop working with their lender, servicer and housing counseling agency and tell them they will take care of everything.

If you suspect a scam, contact the Arizona Attorney General’s Office (see “Tool/Resources” section for the contact information).

CALL YOUR MORTGAGE COMPANY/SERVICER IF YOU KNOW YOU’LL BE LATE AND ALWAYS RETURN THEIR CALLS!!

Let’s work together!

Derek O’Toole

Helping Hands Solution AZ