House & Apartment

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 don't need to pay for foreclosure prevention help. You can get help from a HUD Certified Housing Counseling Agency. Many for-profit companies will contact you and promise to talk to your lender, or even tell you that they can save your house from foreclosure. These are empty promises. Only your lender or servicer can modify your loan. These companies cannot force your lender to agree to anything. While they may be real businesses, they will charge you a big fee for help you  can 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 if you allow them to pay your mortgage. You may be giving away ownership of your house if you sign their documents. Giving title of your home to someone who promises to rent it back to you is a common scam. Never sign a legal document unless you read it and understand what you are signing. It is always 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 check with a HUD Certified Housing Counseling Agency about your options; 
• You fully understand any and all agreements or papers before you sign them; 
• Check the Better Business Bureau and the Consumer Financial Protection Bureau for reviews of the company you are dealing with;
• That any agreements or promises are made to you in writing, not just verbally; and
• You check with a lawyer or your mortgage company before entering into any deal involving your home.

If you speak a language other than English, the law says that you have a right to get an agreement for mortgage rescue services in the language in which you talk to the representative.

Both Illinois and Federal laws prohibit foreclosure prevention scams.  If you are the victim of a foreclosure scam, or you suspect that you have been contacted by a scammer, you should report it to the police. You can also file a complaint with the Illinois Attorney General's Office if you have been harmed by foreclosure scams in Illinois.

For more information, please see the following video on Mortgage foreclosure scams.