Devoted to real estate, real estate agents, and all things property related

In this, the season for mortgage fraud, it’s important to note that there is also “mortgage rescue” fraud.  Yesterday, I mentioned a couple of programs created to help buyers who are victims of sub prime loans.  Today, just a few tips on how to be sure the company you call for help is legitimate.

1. Use  the internet.  Whenever you are thinking of doing business with a company, use the internet to do research.  Take some time with Google, and search the company name, but also search the company name and include the word “scam” or “rip-off”.  For instance “Mortgage Rescue, LLC Scam”.   If anyone has written about a company being a scam, you will be able to see their experience firsthand.  I recently did this with a timeshare company, and decided not to waste my time after noticing over 50 “scam” results.            
   
2. Check with the Better Business Bureau.  Of the 508 complaints about local foreclosure rescue companies, 322 complaints have come in within the last 12 months.  This means that people are still using the BBB to complain.  Checking out a company with the BBB is easy, and will give you some idea of the company’s complaint history, and how they solve consumer issues.
3. Beware of upfront fees.  If you are contacted by someone who tells you for $1,000 or $5,000 they can get you out of foreclosure, be alert.  A legitimate company that wishes to help you should realize that you are in a tight financial situation.  If you have $5,000, keep it. You can probably call your bank, send them the $5,000, and work out a program to avoid foreclosure on your own. 
4. Communicate with your bank.  This is last, but it may be the most important tip! Banks and lenders are now more sensitive when it comes to helping your work out a financial plan to repay your mortgage.  If you have lost your job, or can’t afford your payments, don’t be afraid to call your lender BEFORE you miss payments.  Some lenders have deferred payment plans, employment placement services, and free debt counseling.