If you’re like me, you tend to trust that our government, at least mostly, looks out for us. Yes, we’re jaded by the Wall Street bailouts, uncontrolled spending, and how they respond to certain events, such as the BP oil spill & Hurricane Katrina. But, by and large, we tend to believe they are there for us.
And, that’s exactly what the home loan modification scam artist is counting on. They know that if they approach you in your time of distress and claim to be “affiliated with”, “approved by”, or “certified by the government”, you may fall for it…and put your trust in them.
To continue the ruse, they might even show you an ID, business card, or certificate displaying an official-looking government logo. They won’t mention that they recently made it up using an image editing program.
Noe, they move in for the kill.
They may ask you to pay high up-front fees to be eligible for government mortgage loan modification programs. And, to get you to act now, they may indicate that the program they have in mind is the best one out there…but, it’s closing down is a day or two. So, you better not delay…
It’s a scam. While government-supported home loan modification and refinancing initiatives are legitimate, the scam artist’s claims are not.
What the scammer does not want you to know is that you do not have to pay to benefit from these government programs. All you need to do is contact your lender or loan servicer.
The scam artist’s “company name” or website address may be similar to those of real government agencies. The crook may use such terms as “federal”, “TARP”, or other words or acronyms related to official US government programs. These tactics are designed to fool you into thinking the scam artist is somehow “affiliated with”, “approved by”, or “certified by the government”.
The government is taking actions to stop this type of fraud. But, you also need to protect yourself. Be alert to claims offering “government-approved” or “official government” home loan modifications.
Your lender will be able to tell you whether you qualify for any government initiatives to prevent foreclosure. There are also HUD-approved foreclosure counseling agencies that can assist.
You do not have to pay anyone to take advantage of them.
As always, check with your attorney, CPA, etc.