How to Identify a Mortgage Relief Scam

Last Updated on March 10, 2019 by Ellen Christian

Do you know how to identify a mortgage relief scam? I’m sure I’m not the only one that’s gotten one of those phone calls where the person on the other end says they’re your mortgage company, the IRS, or your bank and needs personal information from you over the phone. Maybe they make promises to help you get your finances in order or to offer you a special deal to lower your interest rate or help with a foreclosure. I’m sharing this information with you because these scams are so common.

 

How to Identify a Mortgage Relief Scam

Foreclosures can have a devastating effect on families and communities. There are still too many homeowners struggling to make their mortgage payments or facing the prospect of losing their homes. About one in 13 homeowners nationwide has fallen behind on his or her mortgage payments, putting them at a higher risk of foreclosure.

Some people may go their entire lives without ever having to face the struggle of foreclosure. If you are reading this, I hope that you are one of those people. But if you are or maybe it isn’t you, it is someone you know and love, I hope you are not going through it alone. It is a sad but true fact that most people who have foreclosure knocking at their door have no idea where to turn and they have no idea that there is actually help available to them.

And what is worse – many of these people fall victim to scams that not only will not help them but will make their situation even more unstable.

Making Home Affordable is a free government resource that can make paying the mortgage easier for homeowners who are struggling with their mortgage payments. With free help from HUD-approved housing experts, homeowners can avoid being scammed by those demanding payment for assistance.

When it comes to upfront fees, MHA tells homeowners, “Don’t Pay, Walk Away.”

• Through the federal Making Home Affordable program, many homeowners have received much-needed help to reduce their monthly payments, get mortgage relief, and avoid foreclosure.
• Telephone scammers often request payment by wire transfer services similar to MoneyGram, or completion of paperwork containing your Social Security Number. Do not make any mortgage payments by wire transfer, or provide any personal information, in response to these calls. If you receive unsolicited calls, always check with your mortgage company using the phone number on your mortgage statement, or call 888-995-HOPE™ (4673) to check its legitimacy.
• Beware of telephone calls urging you to take advantage of the Making Home Affordable Program. Beware of anyone seeking to charge you in advance for mortgage modification services. In most cases, charging fees in advance of a mortgage modification is illegal.
• Paying a third party to assist with your application may not improve your likelihood of receiving a mortgage modification. Beware of individuals or companies that ask you for payment, tout their success rate or claim to be Making Home Affordable (MHA) or Home Affordable Modification (HAMP) experts.

The Making Home Affordable (MHA) housing counseling experts at 888-995-HOPE™ (4673) are available around-the-clock (24 hours a day, 7 days a week), in over 170 languages, and at no cost. They will help homeowners understand their options and design a plan to suit their individual situation.

Homeowners who are struggling to make mortgage payments can call 888-995-HOPE™ (4673) or visit MakingHomeAffordable.gov for free resources and information to help them deal with their mortgage problems and avoid foreclosure.