After a foreclosure case is filed, you will get many letters from people offering to "help" you avoid foreclosure. There are many different types of mortgage foreclosure scams.
You should avoid foreclosure prevention companies. You don't need to pay fees for foreclosure prevention help. Many for-profit companies will contact you promising to talk to your lender. While they may be real businesses, they will charge you a big fee for help you may be able to get for free. In many cases, such a fee is illegal, and many of the services offered by these companies, like a “loan audit," are typically worthless.
Also, watch out for anyone who claims they can stop your foreclosure immediately by appointing them to pay your mortgage. You may be giving away ownership of your house if you sign their documents. Giving your home to someone who promises to rent it back to you is a common scam. Never sign a legal document without reading and understanding. It best to get legal help first.
Beware. If it sounds too good to be true, it probably is. Make sure:
- You check with a lawyer before signing over a deed to your house;
- You do not sign any papers you do not understand; and
- You check with a lawyer or your mortgage company before entering into any deal involving your home.
If you speak only Spanish, the law says that, before you sign a mortgage or any papers, you have the right to deal with a person who speaks your language.
For more information, please see the following video on Mortgage foreclosure scams.