The news headlines are dotted with announcements of attorney generals around the country cracking down on foreclosure rescue scammers who charge upfront fees and then disappear without doing any of the things they promised. But what we don’t hear about is the fact that many of these foreclosure scammers shut down by authorities simply resurface under a different business name.
What can we do about this?
The first thing we need is public awareness. Since home foreclosure has become so prevalent during this recession, the public needs to be aware that there are scammers out their waiting to prey on them. Educating the public about how foreclosure works and what their real remedies are is a critical component to reducing the chance of homeowners becoming victims of foreclosure rescue scams.
Our elected officials need to point out sever important points about foreclosure:
If you don’t pay your mortgage, you will face foreclosure unless you file bankruptcy, sell your home or surrender your home to the mortgage lender in a “deed in lieu of foreclosure” arrangement.
- Homeowners do not need to have a intermediary such as a foreclosure rescue company to negotiate a mortgage modification with their lender.
- Homeowners should never pay upfront fees for foreclosure help unless they are paying a bankruptcy attorney who is filing bankruptcy on their behalf.
- Bankruptcy is the only legal remedy to foreclosure outside of paying your mortgage or negotiating some type of settlement with the lender. If anyone is saying otherwise then they are either uninformed or running a scam.