Even though the $25 billion mortgage servicing settlement was filed nearly a month after 49 state attorneys general and the top five servicers reached an agreement to provide assistance for homeowners in order to compensate for faulty foreclosure practices that occurred following the housing market crash, scammers were still prepared to capitalize on the vulnerability of desperate homeowners.
Although real compensation is still months away, there have been numerous reports of scam operations taking place throughout 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,” said Jo Kerstetter, vice president of education and community relations for Money Management International.
MMI is a nonprofit, full-service credit-counseling agency that provides confidential financial guidance, financial education, counseling and debt management assistance to consumers.
Kerstetter has six tips that homeowners can follow to help them identify and avoid falling victim to any type of foreclosure scam. The tips are listed below:
Don’t panic
Mortgage scams are effective because the scammer is able to exploit the fear of a person who is in a desperate, vulnerable state. Don’t let fear cause you to make irrational decisions.
Never act under pressure
Don’t sign a contract or disclose information before doing your research. You can always request to receive any information in writing.
Trust your gut
If someone is offering you something that sounds too good to be true, it probably is.
Stay informed
Make sure you obtain detailed information about your foreclosure deadlines. If you want to know if you qualify under the Settlement, contact your bank or loan servicer directly.
Don’t release any personal financial information
If you are contacted by someone who claims to be from your financial institution and wants you to “confirm” or help them identify your personal account information, it is likely a scam. Rather than releasing information, ask for their contact information and tell them you’re going to call them back.
There is no fee involved in the national mortgage settlement
If you are contacted in any way from someone asking for money in return for a speedy settlement payment, they are scamming you.
Kerstetter recommends that individuals who have questions or concerns about their mortgage loan should meet with a HUD-certified housing counselor to discuss future options.
