If you’ve fallen behind in your home mortgage payments, a lender reports a Notice of Default (NoD) publicly before it forecloses on a home. This information is fairly easy to get to.
For example, SCO maintains a subscription with a respected third-party provider who has authorized access to the records of the counties we focus on. On a daily basis, we know when a new NoD (or Notice of Trustee Sale – NoTS) is issued.
Unfortunately, scam artists can get to this same information just as easily. They know that homeowners in this situation are vulnerable…and often desperate. So, you need to protect yourself to make sure you don’t get scammed.
The bad guys won’t show up looking like a cat-burgler. They may call, email, send a letter, or show-up in-person. They may even advertise. In any case, they will likely be well-dressed…and appear sincere.
They may describe themselves as “foreclosure counselors”, “loan modification consultants”, and the like. They may offer “foreclosure prevention” or “foreclosure rescue” services. They might even “guarantee” their work. Watch out.
They’ll take advantage of you…if you let them.
Loan modification is something that distressed homeowners attempt in the hopes of staving off foreclosure. And, there are legitimate firms out there attempting to do this service for homeowners every day. (Note: SCO does not offer loan modification services).
If you’re contacted by someone offering to negotiate a home mortgage modification for you…or to stop a home foreclosure…or to delay it for a fee, be sure to check his/her experience, credentials, and reputation first.
And, always maintain personal contact with your lender or mortgage loan servicer. Your lender may be able to help you find real options to avoid home foreclosure. It’s best to contact your lender early in the process to preserve all of your options.
There are also legitimate consumer counseling agencies out there that can help you work with your lender.
Just know that once an NoD or NoTS is filed, you may be contacted by people genuinely interested in helping you avoid foreclosure…and you may also be approached by those looking to take advantage of your, perhaps, desperate situation.