Avoid foreclosure – act now to protect your home!

If you’re behind on your mortgage payments, don't ignore the problem. The problem only becomes more difficult to resolve the further behind you get. Waiting can actually limit your options. Whether your loan is with a credit union or another lender, contact someone in the mortgage department immediately. There may be simple steps you can take to protect your home.

If needed, your lender can refer you to professional counselors who can help you organize a budget to pay your mortgage and other monthly expenses. These agencies can also help you identify local services or programs that provide financial, legal, medical or other support.  A HUD-approved housing counseling agency can help. Visit the HUD website for foreclosure prevention tips.

Beware Of Foreclosure Scams

Be wary of anyone who promises to stop the foreclosure process – it may be a scam. If you are behind in your mortgage payments, many for-profit companies will contact you promising to negotiate with your lender. While some may be legitimate businesses, all will charge you hefty fees for information and services that you can get for free elsewhere.

If anyone promises they will stop your foreclosure if you sign a document appointing them to act on your behalf — BE CAUTIOUS! You may actually be transferring ownership to them and becoming a renter in your own home. Never sign anything without reading and understanding all the terms and getting professional advice from an attorney, or a HUD-approved housing counselor.

Common foreclosure scams

Equity skimming
A “buyer” offers to pay off your mortgage or give you money when the property is sold. They ask you to move out quickly and deed the property to them. They rent out your home and pocket the money without making any mortgage payments. When the lender forecloses, it’s a surprise to you and the renters. And even though you signed over your deed, you still have mortgage obligations.

Phantom help
You are charged outrageous fees for phone calls or paperwork you could do yourself. None of this “help” is likely to save your home. Instead, you’re given a false sense of hope that delays or prevents you from seeking qualified help early in the process when it’s most effective.

The bailout
You are talked into signing over title believing that you can stay in your home as a renter at a lower monthly cost, and buy it back over time. But the terms make the buy-back nearly impossible. As a result, you lose possession and the “rescuer” walks off with most, if not all, of your equity.

Bait-and-switch
You’re told you are signing documents to bring the mortgage current, but are actually signing over ownership. You learn of the scam later, when you are being evicted.

Phony counseling agencies
A “counseling agency” offers to negotiate a new payment plan with your lender, or pursue a pre-foreclosure sale for a fee. You could do these services for yourself, at no charge.

High-Risk Second Mortgages
Be cautious. Although they may look like a good or only option – they may worsen your situation.

AVOID SCAMS!
Before you do anything, contact your credit union or a HUD approved housing counseling agency!