Avoid Scams
Ensure Your Safety and Avoid Falling for Scams
To safeguard yourself from potential scams, it’s important to be aware of certain factors and stay vigilant. Scammers might attempt to deceive you by offering assistance with your mortgage or property tax payments, typically in exchange for an upfront fee. They may falsely claim to provide loan modifications or foreclosure prevention, soliciting upfront payments. By considering the following three points, you can enhance your protection against becoming a victim.
- All of the members associating with the transaction are members of NAR (National Association of REALTORS), NMLS (Nationwide Mortgage Licensing System, And Foreclosure Specialist Certified.
- The foreclosure assistance received does not require upfront payment or repayment.
- The foreclosure assistance received is fully disclosed for all documents, forms, and contracts received by the owners.
Potential Signs of scamming activities
Scammers may employ tactics to pressure you into immediate action. Refrain from succumbing to such pressure. Keep in mind that the foreclosure process is protracted and intricate, involving various legal procedures that must be completed before you face the risk of losing your home. This allows you time to apply for assistance. If uncertain, reach out to your mortgage loan servicer using a trusted method of communication. Your monthly mortgage statements are an excellent source of their contact details.
Additional strategies scammers may employ include:
- Insisting on payment via cashier’s check or wire transfer, as it makes retrieving your funds difficult.
- Attempting to convince you to transfer your home’s deed to them. The deed serves as the legal document proving ownership.
- Employing different stories to pressure you into paying them. Familiarizing yourself with their techniques can help you evade falling for their traps.
- Claiming to be housing counselors, lawyers, representatives of law firms, or government officials. Scammers assert that they will handle all negotiations with your lender to lower mortgage payments or prevent foreclosure. They typically advise against contacting your lender, lawyer, housing counselor, or credit counselor. They may instruct you to make payments directly to them instead of your lender or request the transfer of your property deed.
- Suddenly ceasing communication and disappearing with your money. If you engage the services of someone claiming to be a lawyer, ensure their licensure in your state and their reputation. Merely because a lawyer works for a company does not entitle the company to charge upfront fees or guarantee legitimacy.
- Promise to secure a loan modification for you.
- Urge you to sign unfamiliar documents.
- Advise you to make payments to someone other than your loan servicer or lender.
- Suggest that you cease making mortgage loan payments altogether.
If you encounter any of these requests or claims, you can report the company by filing a complaint with the Consumer Financial Protection Bureau online or by calling (855) 411-CFPB (2372).
If you believe your mortgage servicer is engaging in unlawful practices, reach out to the Department of Financial Protection and Innovation via email at ASK.dfpi@dfpi.ca.gov. Additionally, you can visit the Housing is Key website for further information and resources to help identify and report fraud.