Mortgage Scams

A couple of thoughts about this article about mortgage scams:

• It’s a good thing that the government is cracking down on the schemers and frauds.   Anyone who attempts to make money in a fraudulent way off of those who are down on their luck, hurting, and in the process of losing their homes is a low down loser who deserves to have the law pursue them to the greatest amount possible.
• In the last 6 weeks, I’ve had 7 of my past customers call me and say something along this line:  “Tom, I lost my job, my wife lost her job, I got my pay cut by 30%, I’m out of cash and I don’t know how I’m going to keep my house.”   Those are depressing calls to get, but they are even more depressing calls to have to make.  
• In each case, I was able to put them in touch with our “REO” department and they could begin the process of attempting to determine what options for a loan modification or short sale might be available.  In all of the cases, I’ve already reviewed options and determined that a refinance either isn’t an option or it won’t save them enough money to make a difference.

So, why am I telling you this?   A couple of reasons:

• If you are in financial difficulties, call your lender.    Don’t just let things slide.
• If you have a relationship with a mortgage lender who doesn’t work for the place that’s servicing your loan, get them involved and check out refinancing options first and if that doesn’t work, see if they can get you in touch with someone at the lenders to make sure the lender takes your request for assistance seriously.
• Be very very careful about working with anyone other than your trusted mortgage professional and people at the place that is servicing your mortgage.

Mortgages - A Crackdown On Rescue Schemes - NYTimes.com

SCAMS that claim to help consumers avoid foreclosure have been on the rise lately as some individuals try to take advantage of financially distressed homeowners.

Now state and federal authorities are intensifying efforts to combat these schemes while also reminding consumers that legitimate services are free and widely available.