“Pay us $1,000 now, and we’ll save your home.” Fees that are thousands of dollars and are to be paid up front or in partial payments are a sign of potential fraud. Companies cannot collect fees until you have a written, acceptable offer from your lender or servicer and a written description of the key changes to your mortgage.- “We guarantee principal reductions.” Beware of guarantees that a person or company can stop foreclosure, modify your loan, short sell your property or guarantee that you will remain in your house. Any person or provider guaranteeing an outcome is a sign of fraud. Providers must give you realistic evidence for any claims they make. They must also be licensed. Many times you can find signs of trouble by searching the internet and inquiring with the proper licensing division.
- “Give us the Deed, and we’ll let you stay in your house.” Never, never, never sign your deed over to anyone. The deed holder can sell the right to evict or sell your house and you will still be liable for your mortgage.
- “Stop paying your mortgage.” Not paying your mortgage is a contract breach and will give rise to legal liability. You may lose your home and damage your credit rating. It also creates liability for the one giving you such instruction which is a sign that the person you are dealing with has no idea what they are doing.
- “Don’t talk to your lender.” Companies cannot legally tell you to stop communicating with your lender or servicer. You should be concerned if you are told to quit communicating with your lender. It is a good sign of a scam.
- “Your lender never had the legal authority to make a loan.” There is no “secret” or “little known” law that will absolve you of your debt obligation. There are very highly technical arguments that may be useful regarding transfers. However, only a well-seasoned and licensed attorney in your state can help you in this area. These arguments, if successful will still not relieve you from the debt owed pursuant to the note.
- “Just sign this now; we’ll fill in the blanks later.” Take the time to read and understand anything you sign. Never let anyone else fill out paperwork for you. Don’t let anyone pressure you into signing anything that you don’t agree with or fully understand. Take the document home or to an attorney who can review it for you in a consultation.
- “Call 1-800-Fed-Loan.” A lot of fraud is being conducted under the guise of official federal programs. Do not be fooled or persuaded by providers of mortgage relief services claiming that they are affiliated with any government program.
- “You should file for bankruptcy to keep your home.” Filing for bankruptcy stops foreclosure temporarily. However, it has serious consequences and may not always enable you to keep your house. You should seek the advice of an attorney licensed in your state if you are considering filing for bankruptcy.
- “We can save your home. Call now before you lose your home!” High-pressure tactics are the best sign of fraud.
Tisha Black Chernine, Esq.
