Take Root South Florida

How do I recognize Foreclosure and Fraud Scams?

Predatory Lending Schemes

Unfortunately, when dealing with foreclosure, not all mortgage lenders or credit repair companies have your best interest in mind.

Predatory lenders often target homeowners who are already in financial distress and are struggling to meet their mortgage payments. They will try to take advantage of your circumstances with tactics that alarm you into taking a particular course of action that will make your financial problems worse and increase the risk of losing your home. Predatory lenders usually offer loans with:

• Higher interest rates than the rates for which you may qualify
• Excessive broker fees
• Unnecessary costs like prepaid life insurance
• Terms that will make it very difficult or impossible for you to repay the loan

If you are in a financial crisis or facing foreclosure make sure you work with a reputable organization.  Fraudulent schemes offered by predatory lenders often sound good, but ultimately their goal is to take your home, not help you keep it. 

If you think may have gotten a predatory loan, or would like advice about the appropriateness of a loan you are considering, please call Legal Aide Society of Palm Beach County at 561-833-1461.

Avoiding Foreclosure Rescue Scams
Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their home. Recognize and avoid common scams:

• Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
• 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 your mortgage payment to anyone other than your mortgage company without their approval.
• Read more about common fraud schemes at FreddieMac.com. For more information, click here.
• View the Federal Trade Commission’s Bureau of Consumer Protection educational flyer to better inform consumers about avoiding foreclosure rescue scams and modification schemes. For more information, click here.
• View the Federal Deposit Insurance Corporation (FDIC) printable document about foreclosure rescue and loan modification scams. For more information, click here.

Protect your future!  Taking action early can help you stay in your home. Let us help you plan carefully before you make any decisions.  Call the Take Root South Florida Information line now, at 211 or for a list of Trusted Participants, click here.