Mortgage Rescue Scams
With the recent economic downturn, many homeowners are facing the risk of mortgage foreclosures. Desperate to save their homes, many people are falling prey to the predatory practices of mortgage rescue scams. Typically, these scams solicit the homeowner with promises of debt relief that often seem too good to be true. In fact, these are fraudulent offers, designed to prey upon those most in need of financial help.
The Federal Trade Commission (“FTC”) has alerted consumers to look out for five major warning signs of a mortgage rescue scam. First, they will promise to stop a foreclosure or modify your loan. Second, they will offer “guarantees,” that your home will be saved, with claims of a 97% success rate. Third, they usually require fees to be paid in advance. Fourth, they will advise you to stop paying your mortgage company. Finally, they may have the look or sound of an official agency or governmental authority.
If you believe you or someone you know has been the victim of a mortgage rescue scam, please contact us to discuss your legal options.