How to Protect Yourself From Mortgage Relief Scams: More Stress For Homeowners in Distress

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THANKS ... to the Federal Trade Commission in Washington, DC, for kindly providing much of the information in this article.

The possibility of losing your home to foreclosure can be terrifying. The fact that scam artists are preying on desperate homeowners in financial distress is equally frightening.

Many companies say they can change your home loan and reduce your monthly mortgage payment or take other steps to save your home from foreclosure. They claim that nearly all their customers get successful results. They may offer a money-back guarantee. Others say they're affiliated with the government or your lender. And still others promise the help of attorneys or real estate experts.

Unfortunately, many mortgage relief companies tell you half-truths and even lie to sell their services to prevent home foreclosure. They promise relief from high mortgage payments and the threat for forclosure, but don't deliver. In fact, many of these companies leave cash-strapped homeowners in worse financial shape than before they met.

The Federal Trade Commission (FTC), the nation's consumer protection agency, has a Rule in place to protect homeowners in financial difficulties. The Mortgage Assistance Relief Services (MARS) Rule makes it illegal for companies to collect any fees until a homeowner has actually received an offer of relief from his or her lender and accepted it. That means even if you agree to have a financial rescue or loan modification company help you, you don't have to pay until it gets you the result you want.

If you're struggling to make mortgage payments or facing foreclosure, here's how you can recognize a mortgage assistance relief scam and exercise your rights under the new Rule. And even if the foreclosure process has already begun, you still have legitimate options to help save your home from foreclosure.

Please see full article below for more information.

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Published In: Antitrust & Trade Regulation Updates, General Business Updates, Consumer Protection Updates, Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Fonfrias Law Group LLC. | Attorney Advertising

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