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Don't Be Scammed
Con artists may call themselves mortgage consultants, but their motives aren't the same: They're after the equity in your house or the deed. And they're counting on your desperation. The schemes vary, but there are three main types:
Phantom help
The scammer says he can stop the foreclosure if you will sign a document authorizing him to negotiate with the lender on your behalf. He will charge a fee (often the equivalent of three mortgage payments), make a few calls, handle some paperwork—but nothing that will prevent the foreclosure.
Equity stripping
The con artist persuades you to sign over the deed to your house and generously offers to let you stay as a renter. The rent is higher than your mortgage payment, so you soon fall behind. Not only do you lose your house but the scammer walks away with your equity.
The bait and switch
You sign papers, believing you're bringing your loan current. Instead, you've signed over the deed.
Never sign documents that a trusted attorney has not reviewed. Never send your mortgage payments to anyone other than your lender. And if you think you've been scammed, report it to the Federal Trade Commission (ftc.gov), the Better Business Bureau (bbb.org), or your state Attorney General (naag.org/attorneys).
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