Avoid Foreclosure Scams

Thousands of homeowners are in fear of losing their homes during these tough economic times due to higher adjusted monthly payments, layoffs, insufficient emergency funds, excessive debt, toxic mortgages, and more.

And with so many homeowners already in trouble or "on the edge," con artists are more than willing to offer so-called help in the form of foreclosure rescue scams.

Know how to spot a foreclosure rescue scam

Con artists use half truths and outright lies to promise a solution, and then fail to deliver. Watch for messages like, "We guarantee to stop your foreclosure," and "We can save your home, free consultation," and "We can stop foreclosures this week!" They get your name from public foreclosure notices in newspapers and in public files at local government offices. Be suspicious of unsolicited personalized letters promising speedy relief.

If you are about to lose your home, it's critical you steer clear of foreclosure rescue scams and take action immediately:

  • Get organized. Create a statement of income and expenses, as well as a list of all obligations you owe.

  • Call your lender--now. Face the problem head-on and take initiative, which shows you're acting in good faith. The longer you wait to make the call, the harder it will be to develop an action plan to save your home.

  • Explain your situation. By coming clean, you'll open discussion about available options, such as a reduction in interest rate, reduced monthly payments, or a repayment plan that fits your budget.

  • Know your rights. Find out the specific foreclosure laws and time frames in your state. Do an Internet search for "state government housing office." Sift through your loan documents to determine what the lender can do if you don't make your mortgage payments.

  • Get help. Contact a reputable credit counselor by calling 800-388-2227. The National Foundation for Credit Counseling has a Homeowner Crisis Resource Center at nfcc.org. Contact the local Cooperative Extension service for help developing budgets, action plans, or financial statements.

Remember: If you're looking for friendly and sincere advice, HUECU representatives are here to help. For more information, stop by any of our branch locations, email us or call us at (617) 495-4460.

 

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