Beware of Interest Rate and Foreclosure Rescue Scams

November 9, 2016

Some con artists offer to help homeowners lower their interest rates or avoid foreclosure in exchange for an upfront fee, but after they take the homeowner’s money (often several hundred dollars or more), they provide no real help.

To avoid scams, be wary of loan modification or foreclosure rescue services that:

• Charge upfront fees
• Promise help that sounds too good to be true
• Charge fees for filing complaints with government agencies (which is free to do)
• Use high-pressure tactics
• Say they can help regardless of your financial situation
• Tell you not to contact your lender or the court
• Tell you not to make your mortgage payments
• Brag that they are faster than nonprofit counseling agencies
• Give you a lengthy agreement to sign before they will helpIf you want to adjust your mortgage loan or avoid foreclosure, consider contacting your mortgage lender or servicer directly. Ask if you can refinance your loan or set up a payment plan. Also consider contacting a nonprofit housing counseling agency, which may be able to help you for little or no cost.