Don't get sucked into a foreclosure rescue scam as you look for financial help

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Published Date 5/1/2020

During these times when homeowners might be feeling the burden of financial strain as a result of the COVID-19 shelter-in-place ordinances, they should be careful about a potential increase in loan modification and foreclosure rescue scams, where scammers are attempting to take advantage of people who may be financially struggling during the pandemic.

Your state’s Department of Real Estate (DRE) should have issued a consumer alert to explain loan modification and loan forbearances so that those applying for them have the correct information about those who are authorized to provide services, and more importantly — those who are not. They will also provide tips about how to spot a potential scam.

According to northern California’s Davis Enterprise news, red flags to be on the lookout for, including unlicensed people or companies, a demand for payment upfront, and instructions to transfer lease/rent titles to a third party or granting a “power of attorney” to the loan modifier. “Once money or title is transferred, the scammer may vanish or sell the home without the owner’s knowledge,” they said. They recommend taking the following steps to ensure a safe and educated choice.

(1) Contact your lender directly for a loan modification or forbearance programs that suit your financial situation. Take detailed notes about who you’ve spoken with along with details of the call.

(2) If you need assistance with this, the U.S. Department of Housing and Urban Development (HUD) offers free housing counseling through HUD-approved non-profit agencies. Counselors can be found on HUD’s website: www.hud.gov

(3) If you can’t find a HUD counselor that suits your needs, you can hire a representative to negotiate for you. This can be a licensed real estate broker with mortgage loan originator license endorsements who is adept at performing loan modification work. Make sure the person is licensed by going online and visiting your state’s Department of Real Estate web site, where you should be able to plug in a name and check their license status.

(4) If you wish to check in the legitimacy and business practices of any company you are considering, you may also contact the Better Business Bureau at www.bbb.org. And if you find fraud, report it to your local county District Attorney’s office.

Source: TBWS

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Yan Minkovitch

Broker

NMLS: 240340

Progressive Mortgage

5567 Reseda Blvd #323, Tarzana CA

Company NMLS: 1882585

Office: 818-717-7172

Cell: 323-864-7001

Email: yan@myprogressivemortgage.com

Web: https://www.myprogressivemortgage.com/