Mortgage Scams ::: Tips to Avoid Being Scammed on Your Home Mortgage



	Tips to Avoid a Scam: 1. The Golden Rule When an offer seems too good to be true, it probably is. 2. Keep Personal Info Private Never give your bank account, social security, or credit card numbers to anyone you don’t know and trust. 3. Avoid High Pressure Sales Say no to any offer or deal that is only available right now. 4. Never Pay for a Prize If you are offered a prize but are asked to pay a “processing fee” or “taxes in advance,”it is likely a scam. You shouldn’t have to pay anything to win a free prize. If you’re still not sure whether it's a scam, call our Scam Hotline at (858) 715-1648.				Scam Menu: Mortgage Scams Loan Modification and Foreclosure Schemes Reverse Mortgage Scams Loan Modification and Foreclosure Schemes: Tips to Avoid Being Scammed As the recent housing market’s bubble has burst, many people are finding themselves stuck in difficult positions. Some now owe more on their loan then their home is worth—called “upside down” on their loan, while others have had their interest rate adjust to higher rates—thus making their monthly payments dramatically increase. In response to this overwhelming volatility in the housing market, loan modification and debt reduction companies and service providers have popped up all over. While some of these companies are providing the services they promised and have been successful in assisting homeowners remain in their homes, unfortunately there are many that are preying on unsuspecting and desperate homeowners who are afraid of losing their homes. If you are in danger of losing your home, or need assistance with loan modification, Elder Law and Advocacy encourages you to review the following tips on how to avoid being scammed—and when in doubt call our free Scam Hotline at (858) 715-1648 and speak with one of our attorneys. -DO NOT pay advance loan modification fees to anyone (including an attorney) if your lender has already filed a notice of default. -DO NOT pay your mortgage to someone other than your lender. -DO NOT work with people who instruct you not to contact your attorney, lender, or a credit or housing counselor. -DO NOT transfer ownership of your home to someone who promises to save it. This is a common scam, in which the person offering to help steals the home’s equity and still charges you rent. -DO NOT pay upfront fees to non-lawyers who promise to assist with loan modification without checking with the California Department of Real Estate. Real estate licensees are prohibited from collecting advanced fees for loan modification work before meeting strict requirements. -DO beware of unsolicited contacts and high-pressure sales techniques. -DO contact your lender as soon as possible if you are having trouble making mortgage payments. -DO remember there are many nonprofit agencies that can help you seek a loan modification without charge and real estate licensees who can assist for a fee paid only after they have completed their work. Remember these are just simple rules of thumb, for further information and advice, feel free to call Elder Law and Advocacy’s newest nonprofit program Senior Shield at their Scam Hotline (858) 715-1648 for further information and helpful resources. Reverse Mortgage Scams The FBI and the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) urge consumers, especially senior citizens, to be vigilant when seeking reverse mortgage products. Reverse mortgages, also known as Home Equity Conversion Mortgages (HECM), have increased more than 1,300 percent between 1999 and 2008, creating significant opportunities for scam perpetrators. Reverse mortgage scams are engineered by unscrupulous professionals in a multitude of real estate, financial services and other related entities to steal the equity from the property of unsuspecting senior citizens aged 62 or older; or to use these seniors to unwittingly aid the fraudsters in stealing equity from a flipped property. In many of the reported scams, victim seniors are offered free homes, investment opportunities and foreclosure or refinance assistance; they are also used as straw buyers in property flipping scams. Victims are frequently targeted for this fraud through local churches, investment seminars and television, radio, billboard and mailer advertisements. A legitimate HECM loan product is insured by the Federal Housing Authority (FHA). It enables eligible homeowners to access the equity in their homes by providing funds without incurring a monthly payment. Eligible borrowers must be 62 years or older who occupy their property as their primary residence and who own their property or have a small mortgage balance. Seniors should consider the following before acting on a reverse mortgage offer: -DO NOT respond to unsolicited advertisements. -BE suspicious of anyone claiming that you can own a home with no down payment. -DO NOT sign anything that you do not fully understand. -DO NOT accept payment form individuals for a home you did not purchase. -DO seek out your own reverse mortgage counselor. If you believe you are a victim of this type of fraud, please file a complaint. Information can be submitted to your local FBI office or you may report this to HUD by calling 1-800-347-3735. Scam Menu: