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How to recognize a foreclosure scam

On Behalf of | May 3, 2023 | Foreclosure Defense |

Many people in Florida struggle to stay on top of their bills. If you count yourself among those having a hard time keeping up with mortgage payments, you may worry about your mortgage lender threatening you with foreclosure. While there are legitimate, dedicated organizations in place to help you navigate this issue, there are also foreclosure scammers out there who might try to pray on your fears about losing your home.

Per the Consumer Financial Protection Bureau, you may be able to speak with an agent at a housing counseling agency approved by the Department of Housing and Urban Development about what you might do to protect your home against foreclosure. You may also be able to speak with your mortgage provider to see if you might be able to work something out. Be wary of working with other parties, however, as you run the risk of encountering scams. Tread especially carefully if someone does any of the following.

Makes guarantees

Think twice before working with anyone who guarantees you are not going to lose your home if you do so. If a company promises to make certain changes to your mortgage obligations, question this, too.

Asks for money upfront

Asking for payment upfront is another key sign of a foreclosure scam. Legitimate companies that work to help borrowers do not do this.

Tells you to stop paying your mortgage

Ceasing mortgage payments without talking to your mortgage provider is a bad idea. If a company asks you to do this, it may be a scam, and taking this advice may make it even harder for you to figure out a way to keep your home.

If a company makes promises about preventing foreclosure that sound too good to be true, question its legitimacy and seek help somewhere else.