How to Spot a Mortgage Scam
While the landmark $25 billion National Mortgage Settlement was just announced last month, scammers have wasted no time capitalizing on the vulnerability of desperate homeowners.
The settlement with the nation’s five largest mortgage servicers was signed by federal and state officials Feb. 9, and will provide assistance for homeowners in order to compensate for the faulty foreclosure practices offered by mortgage servicers following the housing market crash. According to the nonprofit credit-counseling agency Money Management International (MMI), although real compensation is still months away, there have already been numerous reports of scam operations popping up across the country.
“While the government has been cracking down on foreclosure scams, it is important for you to remain diligent in keeping your personal information safe,” advises Jo Kerstetter, vice president of education and community relations for MMI.
Kerstetter offers the following tips to help avoid a scam:
For more information about mortgage assistance relief scams, visit FTC.gov. If you have questions or concerns about your mortgage loan, consider meeting with a HUD-certified housing counselor to discuss your options.