Scam Watch: Don't Get Duped into Fake Mortgage Relief

Bad news: It could be worse

Don't get hit by a scam.

It’s cruel, but true: Scam artists view struggling homeowners facing foreclosure as money-making opportunities.

There are lots of organizations out there right now trying to help modify loans for people who can’t keep up with their mortgage payments. Unfortunately, there are con artists out there imitating these helpful sources, and they don’t care if you end up homeless.

Don’t get eaten

I think Angie Moreschi of the Consumer Warning Network sums it up well:

“You’ve got that $75 billion out there in housing aid, and that’s going to bring the scam artists out of the woodwork. They are going to be like piranha circling the kill.”

So beware, and watch out for these scams:

1. Phantom help

The FBI has identified three basic types of scams, and this is the first. In this scenario, fake mortgage rescuers promise help, charge a fee and run off with the cash. Usually the scammer is never heard from again, and the mortgage, of course, remains unchanged.

2. Bailout scam

In a couple of scam scenarios, the con artists could end up owning your house. In a bailout scam, scammers will ask you to surrender your house title to them. The con artist says the homeowners can rent the house until the mortgage is “fixed” and then repurchase it.

3. Bait and switch

No one likes reading through mounds of paperwork, but if your house is on the line, it’s time to buckle down. In a bait and switch scam, the con artist dupes homeowners into signing away the deed to their house by telling them they are signing mortgage modification papers. ... click here to read the rest of the article titled "Scam Watch: Don't Get Duped into Fake Mortgage Relief"