Avoid Foreclosure Scams!

Twenty-four hour news channels and Internet information at a click of the mouse can be a double-edged sword, especially if you are behind on your mortgage and worried about losing your home. We know that there is funding through recent legislation that is designed to help homeowners keep their investment. But who can you trust? The Federal Reserve Bank of Dallas wants to help you understand the complexities of the foreclosure crisis and provide solutions for community recovery, rebuilding and preparing for the future. Their website at: http://dallasfed.org/ca/foreclosure/index.cfm provides a variety of helpful, easy to read articles that could make this road a little less treacherous. One great example comes from The Federal Reserve Board at: http://www.federalreserve.gov/pubs/foreclosurescamtips/default.htm They list of 5 simple tips that if taken, could avoid disaster: 1. Work only with a nonprofit, HUD-approved counselor. If you are looking for help to prevent foreclosure, be sure the counseling agency is on the Department of Housing and Urban Development's list of approved agencies. Visit HUD's website for an easily searchable list of HUD-approved housing counseling agencies, or call 877-HUD-1515 (877-483-1515) for more information. If you are approached by foreclosure counselors--by mail, phone, or in person--make sure the counseling agency is HUD-approved before you do business with them. 2. Don't pay an arm and a leg. You should not have to pay hundreds--or thousands--of dollars. Most HUD-approved housing counselors provide no-cost counseling services and many more provide low-cost counseling. Do not agree to work with a counselor who collects a fee before providing you with any services or who accepts payment only by cashier's check or wire transfer. In general, do not pay money to anyone unless you know exactly what services you will receive. 3. Be wary of "guarantees." A reputable counselor will not guarantee to stop the foreclosure process, no matter what your circumstances. Working with a legitimate counselor can certainly increase your chances of keeping your home--but be wary of people who promise a sure thing. Again, get the details of your transaction, along with any promises, in writing first. 4. Know what you are signing--and be sure you sign it. Don't let a counselor pressure you to sign paperwork you haven't had a chance to read through carefully or that you don't understand. Don't sign any blank forms or let "the counselor" fill out forms for you. Be sure to talk with an attorney before signing anything that transfers the title of your home to another party. 5. If it sounds too good to be true, it probably is. If you feel you may be the target or victim of foreclosure fraud, trust your instincts and seek help. For tips on spotting scam artists, visit the Federal Trade Commission's web page on foreclosure rescue scams. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Federal Citizen Information Center's Consumer Action Website This is just one article in this excellent series. You’ll also find information about the Federal Reserve’s Homeownership and Mortgage Initiative, which is a comprehensive strategy across the Federal Reserve System to provide information and outreach to prevent unnecessary foreclosures and to stabilize communities. Help is out there, just do your homework and these websites are a great place to start!