Tuesday, March 17, 2009

Troubled Homeowners- Watch Out For Scams

Daily Real Estate News | March 16, 2009 | Share

Scammers Target Troubled Borrowers

Scam artists are proliferating, attempting to make money off troubled borrowers interested in taking advantage of President Barack Obama’s foreclosure-prevention plan.

The firms charge fees for what they tell borrowers will be quick and effective negotiations with banks. In most cases, the firms take the home owners’ money – often more than $1,000 – and do nothing.

The Federal Reserve recently issued this advice for people seeking to modify their mortgages:

Work only with HUD-approved nonprofit counselors. (See www.hud.gov)
Don't agree to pay a fee before you are provided with the promised service.
Beware of people offering "guaranteed" results.
Don't sign blank forms or documents you haven't read.

Source: The Wall Street Journal, James R. Hagerty (03/11/2009)

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