Foreclosure rescue fraud is sweeping the country and can end up costing you the home and equity you’re desperately trying to save from foreclosure. If someone who is not your mortgage lender promises to save your home and asks for you to pay money up front, you need to be very cautious. Here are 5 signs of foreclosure rescue scams from our partners at blackenterprise.com:
1. The company requests a fee before providing a service. To combat such scams an advanced fee ban under the Federal Trade Commission’s Mortgage Relief Services Rule has been put in place to prevent distressed homeowners from being taken advantage of.
2. You’re pressured to sign papers that you don’t understand or haven’t had an opportunity to read completely. Always take your time to read documents. Don’t do business with a company that discourages you from reading everything thoroughly. As a rule of thumb, consider legal assistance if you need help interpreting complicated forms. Never rush through important documents. “I think people need lawyers. And I hope attorneys will volunteer or take more cases and represent people in mediations and foreclosures because when people are represented I think they do much better, says Taitano.