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in a Mortgage Rescue Scam
At a time when many homeowners need a hand up, a growing number of fraudulent foreclosure "rescue" companies are kicking them when they are down. Authorities are cracking down on these unscrupulous companies, but you can also protect yourself by learning how these scams work and where to find legitimate help.how foreclosure rescue scams work
If you're falling behind on your mortgage, you're not alone. One in every 159 U.S. housing units received a foreclosure filing during the first quarter of 2009 – an increase of nearly 24% since the first quarter of 2008.*
Scamming companies set their snares with phony promises such as:
- "We can save your home. Free consultation."
- "We guarantee to stop your foreclosure."
But once homeowners are lured in, they are trapped into an even worse financial position. Beware of these fraudulent foreclosure practices:
- Phantom help – Homeowners are charged exorbitant fees up front for phone calls and paperwork, or services that go unfulfilled.
- Bailout – Homeowners are led to believe they can "save" their home by temporarily surrendering their title and can buy it back later.
- Bait and switch – Homeowners sign a new mortgage without knowing they are giving up ownership yet are still responsible for repayment obligations.
Some "rescue specialists" may even offer to file bankruptcy for you as part of their scam. But bankruptcy does not automatically stop foreclosure, and it stays on your credit report for 10 years.
legitimate help is available
Mid-Atlantic Federal Credit Union may be able to help you refinance your mortgage and get back on track with your payments. And our low-interest credit cards and direct deposit can help you budget and routinely save money. We also offer the BALANCESM Financial Fitness Program free to members. This program offers confidential credit counseling to help turn your financial situation around.
You may also qualify for government-supported programs that may reduce your monthly payment. A mortgage specialist at MAFCU can help you find out if you're eligible.
Don't fall into a mortgage rescue scam trap. Contact Mid-Atlantic FCU at 888-558-0538, option 3, for a helping hand you can trust.
* Source: RealtyTrac, April 16, 2009.
