Source: Federal Trade Commission
Life happens and sometimes you end up with trouble paying your mortgage. Maybe you were affected by a natural disaster, lost your job, or got stuck with a bunch of medical bills after an illness. Then, suddenly, you get an unexpected call offering you mortgage relief. But could it be a scam?
Mortgage assistance does exist, but scammers try to take advantage of homeowners looking to save their home. The scammers often call unexpectedly, promising to modify your mortgage or give you a way to avoid foreclosure — if you make a payment upfront.
But don’t pay. It’s illegal for companies to charge a fee before you get any services. Anyone asking you to pay upfront is giving you a warning that you might be dealing with a mortgage relief scam.
Here are more signs of that scam:
- Scammers tell you to stop communicating with your lender…but you always have the right to contact your lender directly to see if you have other options.
- Scammers want you to pay them only by cashier’s check, wire transfer, or a mobile payment app because it’s hard to get your money back.
- Scammers try to convince you to transfer the deed to your home to them. But if you do, you probably won’t get it back.
Need help managing your debt?
- If you don’t have one already, start by making a budget. Use this worksheet to see if you can find ways to spend less money and put the savings towards paying off your debt.
- Call the companies you owe money to right away. Explain why you’re having trouble paying and ask for a payment plan.
- Find legitimate help from housing counselors if you’re having trouble paying your mortgage, or find a credit counselor to help make a plan to repay your debt.
Tell the FTC about any mortgage relief scams you spot at ReportFraud.ftc.gov and your state attorney general.