We have been seeing a lot of strange things lately where borrowers in trouble are being taken advantage of by scammers. The newest one is where the scammers are taking advantage of borrowers that are interested in seeking relief that could be provided by President Barack Obama’s foreclosure-prevention plan. The company, or individual, collects money from the borrower, as much as $1,500, while promising to negotiate with the bank to get a quicker loan modification or short sale approval. Once they collect the money, they do nothing. The Federal Reserve recently issued this advice for people seeking to modify their mortgages:
•Work only with HUD-approved nonprofit counselors. (See www.hud.gov)
•Don't agree to pay a fee before you are provided with the promised service.
•Beware of people offering "guaranteed" results.
•Don't sign blank forms or documents you haven't read.
You can do a loan modification or short sale for free. In fact, under the program there could be an incentive for you to work with the bank to do so. If you ever have a question about what you are being told by someone, just give us a call at 463-1011!
Source: NAR & The Wall Street Journal, James R. Hagerty (03/11/2009)
Tuesday, March 17, 2009
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