Mortgage Help

As foreclosure rates rise, evidence from other parts of the country indicates the number of rescue scams may be increasing. According to Alison Preszler, a spokeswoman for the Council of Better Business Bureaus, the BBB for Clearwater, Florida, received 508 complaints about local foreclosure rescue companies in the past three years with 322 coming just within the last 12 months.

Charlotte, North Carolina’s BBB office reported last year that two foreclosure rescue companies were operating; today the count is 15 and six have already had legal actions taken against them. Twenty-one new companies began operations this year in Cleveland.

More

Tips for Avoiding Scams

1) Contact your lender directly if you have a problem. Do not use a foreclosure “rescue” company or debt settlement firm, particularly if they contacted you unsolicited.
2) Never make your payment to anyone but your lender.
3) If you need assistance, contact a non-profit consumer credit counseling service recommended by the US Department of Housing and Urban Development (HUD). You can find HUD-approved services here.
4) Never pay a fee for credit counseling.
5) Always review contracts before signing. Take your time to review any documents and contact a lawyer if possible.

Remember, your lender does not want to foreclose on your property. Foreclosures cost lenders a lot of money. Lenders will be flexible in helping you bring your mortgage current, particularly in today’s difficult credit environment.