Scam Artists Key-In On Troubled Borrowers

Monday, March 23, 2009

It seems like with President Barach Obama’s new foreclosure-prevention plan comes a slew of new scammers rearing their ugly heads.  This new breed of grotesquely unethical beings are preying on homeowners who are in need of help in dealing with the banks.

Legislation that is designed to give aid to homeowners needing leniency in negotiating new financing terms has apparently spawned a proliferation of firms specializing in scams.  These firms are charging fees based on promises that they will effectively negotiate your situation with your bank on your behalf.  These fees can often escalate to more than $1,000 per client.

What ends up happening with these types of parasites is absolutely nothing.  You spit out the cash and trust that your worries will be managed only to find that your money has disappeared while your mortgage turmoil remains unchanged.  In regards to any refinancing terms that you may be considering, the Boyd Team strongly recommends that you deal directly with a certified financial advisor before you ever trust anyone over the phone or internet.

In response to the news of these nationwide swindles, the Federal Reserve recently issued their advice for homeowners looking to modify their existing mortgage terms:

  • When deciding to work with a mortgage counselor, seek out and work only with HUD-approved agencies (See www.hud.gov)
  • Never pay any fee before you are provided the service
  • Remain skeptical of anyone promising “guaranteed” results
  • Never sign an incomplete or blank documents, especially anything you haven’t thoroughly read

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