Help!  I've been scammed! 

Loan modification scams are everywhere.  Many people have been taken advantage off and are in worse shape than when they started.

Here are things to look for if you are thinking about a loan modification:

Foreclosure Rescue Scams

A scam artist poses as a counselor and tells you he can negotiate a deal with your lender to save your house, but you have to pay him a fee first. He may even tell you not to contact your lender, lawyer or housing counselor. He may even insist that you make all mortgage payments directly to him while he negotiates with the lender. Once you pay the fee, or a few mortgage payments, the scammer disappears with your money.

"Government" Modification Programs

You get a letter that looks like this company is affiliated with or even approved by the federal government as a result of the President's Rescue Plan.  For an upfront fee, the scammer promises to help you qualify for one of the government programs.

Don't fall for it!  Contact your current lender directly and they can tell you if you qualify.  You don't have to pay for it!

Leaseback Scam

This is one of the worse ones out there.  The scam artist urges you to surrender title of you home to them so that it does not go into foreclosure. 

They will let you stay in the home as a renter or a lease-to-own tenant so that you can buy it back in few years.

The scammer never intends to sell you the home.  In fact, he may raise the rent over time so that you cannot afford to pay.  Once you get behind, he starts the eviction process to get you out.  Now he can sell the house!

A Promise to Find a Buyer for Your Home

The scam artist promises to find a buyer (or tells you he already has a buyer), but you have to sign over the deed to him.  He promises to share the profit with you after the sale.

Once you've done this, you are done.  No home and no money!  He simply rents or sells the home!

If you would like to talk with a counselor for free, visit HUD or call 888-995-4673.

photo by Caston Corporate