Jump to Navigation

Foreclosure rescue scams and how to avoid them

It may be important for homeowners in Washington, D.C. to be aware of foreclosure rescue scams. Any claim that is made about stopping foreclosure for a fee should be subjected to scrutiny by a homeowner. Homeowners should also never make mortgage payments to a party that is not their mortgage servicer or sign the ownership of their home over to a third party.

A foreclosure rescue scam can sometimes be identified when the homeowner asks for written information. Although scam artists are likely to make bold verbal claims, they will not be so eager to put those claims in writing. Furthermore, no documents that contain blank lines and spaces should be signed. In some cases, another party could later add information to the document, changing the nature of the contract.

A person who is having trouble paying their mortgage may have better luck by contacting their mortgage servicer directly than by looking for a third-party solution. If threatening letters are being sent to a homeowner, it might be beneficial to seek help from a HUD-approved housing counselor. In addition, in some cases, the terms of the mortgage might be renegotiated by contacting the lender.

A homeowner who is having trouble with mortgage issues may be able to save their home from foreclosure by filing for bankruptcy. Bankruptcy protection might allow a debtor to exempt their home from seizure by a lending institution. A bankruptcy attorney may be able to help a homeowner to understand all of their options and determine what form of bankruptcy may be the most beneficial for their specific situation.

Source: Department of housing and community development, "Beware of Foreclosure Rescue Scams ", October 23, 2014

No Comments

Leave a comment
Comment Information
Start Right Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Visit Our Bankruptcy Law Website Subscribe to This Blog's Feed
Office Locations

1115 Massachusetts Ave NW,
Washington, DC 20005
Phone: 202-559-1428

10512 Pohick Court,
Fairfax Station, VA 22039
Phone: 703-550-7030

6926 Seven Locks Road,
Cabin John, MD 20818
Phone: 301-890-4500

Toll-Free: 877-441-4076
Fax: 202-638-5858

Twitter link