Being behind on your bills is probably a new experience for you. It’s normal to feel overwhelmed and not know what to do. When someone offers help…especially easy help, you want to believe what they’re saying is true and that they can solve your problem. The truth is, some of them can help you…but some of them are only claiming they want to help you when they really want to scam you out of your home. So what should you do? How can you tell the difference?
1. Don’t panic. Get knowledgeable about the foreclosure process in your state and make sure you understand all the deadlines and how much time you have before your home is sold.
2. Consult a lawyer of your own choosing before you sign anything. If you need help finding a lawyer, I highly recommend the National Association of Consumer Advocates.
3. Never sign a contract under pressure. If someone won’t give you time to consider their offer (with a lawyer), don’t agree to anything!
4. Don’t sign away ownership of your house without consulting an attorney. Often, scammers will ask you to sign a “Quit Claim Deed” to do business with them. By signing this deed, you give them the deed to your home.
5. Never pay your mortgage payments to anyone except your mortgage company. Never.
6. Pay attention to letters from your lender. Keep them and read them until you understand what they’re saying. Get help if you need to from a HUD Housing Counselor or call your lender and ask for an explanation.
7. If you sell your home, make sure you’re released from liability for your mortgage. This is another common tactic of scammers. They get you to “sell” your house to them, but the documents you sign don’t absolve your responsibility to pay for your home. Refer to #4 above.
8. Get everything in writing…don’t EVER accept a verbal agreement from anyone regarding your foreclosure.
9. Never sign anything that has blank space or lines on it. If it has blank lines, fill them in or “X” out the blank spaces.
10. Use your own translator if you don’t speak English as your primary language. Don’t trust a translator provided by a “rescue” firm.
11. Finally…as your mother probably told you…if it sounds too good to be true, it probably is. If someone says they can take all your problems away and solve your problem overnight or without any cost to you, they’re lying.
Who can you trust?
One of the best ways to keep yourself safe is to ignore anyone you don’t seek out. If they call you, mail you, or e-mail you trying to solicit your business and trust, it’s a good indicator they’re using aggressive tactics that you probably don’t want to get involved with.
If you want to be ultra careful, you should begin your search for help with the Department of Housing and Urban Development (HUD). You can start your search online at their web site. You can also begin at the HopeNow website or call them at 888-995-HOPE.
Finally, if a company you’re dealing with demands to be paid up front and offers no refund policy, they’re probably a scam and should be avoided. There are many for-profit companies available that will work diligently on your behalf and do their very best to save your home. Unfortunately, though, there are a lot of scammers out there too.
Tags: counseling, hope now, scams, tips
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