Protect Yourself From Mortgage Relief Scams

If you are a homeowner in financial distress, you may have received mailings and phone calls from companies purporting to help you negotiate a settlement or modification with your lender.  I have clients that have shown me letters that actually appear to come from the government, or from their lender, upon first inspection.  BE CAREFUL.  There are a lot of mortgage relief scams out there, and you don’t want to be their prey.  The scams became so prevalent, in fact, that the FTC enacted a rule — called the Mortgage Assistance Relief Services Rule (the “MARS Rule”) in 2010.

Under the MARS Rule, you should be particularly careful when dealing with a NON-ATTORNEY for mortgage relief services, especially if:

1)  They request payment up front.
2)  They request payment from you before you have accepted the lender’s offer.
3)  They do not provide a written explanation of how the lender’s offer will change your current mortgage.
4)  They do not advise you that you may reject the offer WITHOUT incurring any charge from their company.
5)  They imply that they are affiliated with the government or with your lender, or that their services have been approved by your lender.
6)  They tell you that your loan modification is a “done deal”, or that you are guaranteed to get approved.
7)  They advise you to stop making payments on your mortgage without advising you of a) the consequences to your credit; and b) that you may lose your home as a result.
8)  They tell you to stop communicating with your lender directly. 

Remember, you as a consumer have a right to stop doing business with any mortgage relief company at any time, without charge.