When someone suggests a mortgage modification for you to help you avoid foreclosure, proceed very carefully. Many of these people are out to make money, and a lot of them are running scams that may lead you further into debt.
The Consumer Financial Protection Bureau warns you to watch out when you talk to someone who says he or she can help modify your mortgage, especially if they:
- Tell you to stop making mortgage loan payments. Not making your mortgage loan payments could hurt your credit score and limit your options.
- Tell you to start making payments to someone other than your servicer or lender.
- Ask you to pay high fees upfront to receive services.
- Promises to get you a loan modification.
- Ask you to sign over title to your property.
- Ask you to sign papers you do not understand.
- Pressure you to sign papers immediately.
You can get free, truthful help by callling (855) 411-CFPB (2372) from 8 a.m. – 8 p.m. ET, Monday-Friday to be connected to a U.S. Department of Housing and Urban Development (HUD)-approved housing counselor today.
If you think you’ve been scammed:
- Contact your State Attorney General.
- Report a scam to the federal Financial Fraud Enforcement Task Force.
- File a complaint with the Federal Trade Commission