1. The company requests a fee before providing a service. To combat such scams an advanced fee ban under the Federal Trade Commissionâ€™s Mortgage Relief Services Rule has been put in place to prevent distressed homeowners from being taken advantage of.
2. You’re pressured to sign papers that you don’t understand or haven’t had an opportunity to read completely. Always take your time to read documents. Don’t do business with a company that discourages you from reading everything thoroughly. As a rule of thumb, consider legal assistance if you need help interpreting complicated forms. Never rush through important documents. “I think people need lawyers. And I hope attorneys will volunteer or take more cases and represent people in mediations and foreclosures because when people are represented I think they do much better, says Taitano.
3. The company tells you not to contact your lender, lawyer, or credit or housing counselor. This indicates they most likely have something to hideâ€”don’t let it be your money.
5. The company guarantees it can stop the foreclosure process no matter what the circumstances. If they claim they can help anyone, regardless of the situation, you should be suspicious
If you believe you have been victimized by a foreclosure rescue company, report it immediately. Visit PreventLoanScams.org or call the Homeownership Preservation Foundation at 888-995-HOPE.