How to Identify Mortgage Fraud?

As I continue to receive calls and e-mails asking the question, “is this for real” or “is this a scam” I’m amazed at the lengths companies will go through to make homeowners think the information they are receiving is from their own mortgage lender or the VA or another legitimate entity.  While there are some companies out there that are trying to help, there are twice as many out there with ill intent.

While I try to advise people carefully, on these things, I was happy to find that Freddie Mac has identified the same things to people.

Following are six red flags identified by Loan Modification Scam Alert^TM, a national public education campaign, to indicate that you may be dealing with fraud:         

• A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.
• A company/person guarantees they can stop a foreclosure or get your loan modified.

(many have paid $1700 and more to have people tell them this, and suddenly there is a foreclosure notice on the door)

• A company/person advises you to stop paying your mortgage company and pay them instead.

(what causes the damage to your credit scores is the not paying the mortgage, not the short sale for example)

• A company pressures you to sign over the deed to your home or sign any paperwork that you haven't had a chance to read, and you don't fully understand.
• A company other than your lender claims to offer "government-approved" or "official government" loan modifications.

(If you receive something that causes you to raise your eyebrows... shred it!)

• A company/person you don't know asks you to release personal financial information online or over the phone.

Freddie Mac is the co-chair of the Loan Modification Scam Prevention Network that is working with the new Financial Fraud Enforcement Task Force and others to track and prosecute mortgage fraud.

  Call your lender with questions about loan modification scams – knowledge is your best defense.  You can also follow the fraud alert folks on Facebook http://www.facebook.com/loanscam

Karen@KarenButler.com

850-830-8780

Military Relocation Specialist

Fort Walton Beach, Fl