Foreclosure Prevention Gone Awry?

'Justice League' clamps down on home mortgage scams

Under the Justice League’s efforts, Chase Home Finance, Suntrust Mortgage, GMAC Mortgage, and American Home Mortgage Servicing, are distributing advice to consumers about avoiding mortgage relief scams and directing them to free, legitimate counseling services for at-risk homeowners.

How do you know if you’re being targeted by one of these nefarious companies? Here are a few questions to ask:

Are you required to pay fees upfront? If so, that is a red flag and you may want to reconsider using the company.

Were you asked to pay a fee in exchange for housing-counseling services or modification of a delinquent loan? These services are offered for free by consumer advocacy groups, so walk away.

Were you asked to sign over your deed? “Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt,” says Making Home Affordable Website.

Were you asked to submit mortgage payments to an organization other than your lender, without your lender’s approval? That’s a no-no and a huge glaring red flag.

Where to turn if you’re facing foreclosure:
Obama’s site www.makinghomeaffordable.gov/
HUD-approved counselors
Homeowner’s HOPE Hotline at 1-888-995-HOPE
Refinancing FAQs

Renita Burns is the editorial assistant at BlackEnterprise.com

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  • http://www.greatmortgageedge.com George

    Just wondered if you have many people that comment and do you answer them.

    • Renita Burns

      It depends. I try to.

  • http://hubpages.com/hub/Mortgage-Loan-Modification-Programs-To-Keep-Your-Home micheal Khuiness

    Some more tips would be great as foreclosure laws do change. Any more information and experiences are appreciated.