MHA tips for avoiding scams

The Making Home Affordable Web site, www.makinghomeaffordable.gov, not only provides homeowners with facts and qualifications about the MHA programs, but also gives valuable advice on avoiding foreclosure and mortgage modification scams.

“Foreclosure rescue and mortgage modification scams are a growing problem. Homeowners must protect themselves so they do not lose money — or their home. … The federal government provides free resources to get you the help you need,” states the MHA, which suggests contacting a U.S. Department of Housing and Urban Development-approved counselor via the Homeowners HOPE Hotline at (888) 995-HOPE (4673) for information about the MHA programs.

Following are tips to avoid scams as provided by MHA:

• Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.

• Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams.

• Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.

• Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

• Never make a mortgage payment to anyone other than your mortgage company without their approval.

To learn more about the types of scams that are occurring — foreclosure rescue and refinance fraud in which the scam artist offers to work as a liaison between the homeowner and the lender, and fake modification programs that claim to be government affiliated and charge high up-front fees, among others — check out the U.S. Department of Treasury’s Office of the Comptroller of Currency’s Consumer Tips for Avoiding Mortgage Modification Scams and Foreclosure Rescue Scams report at www.scc.treas.gov/ftp/ADVISORY/2009-1.pdf.

For those who believe that they have already become the victim of a scam, or have encountered a possible scam, MHA advises filing a complaint with the Federal Trade Commission Bureau of Consumer Protection: Call toll-free at (877) FTC-HELP (382-4357) or visit www.ftccomplaintassistant.gov.