Scam artists are equal opportunity thieves. They’ll even stoop so low as to prey on good people in desperate situations…such as those facing home foreclosure.
The con will go something like this. A scammer will offer to act as a intermediary between the upside-down homeowner and their lender. The scam artist may offer to negotiate a repayment plan or a loan modification for you. They might even go so far as “guaranteeing” to save your home from foreclosure for you.
The crook might tell you to make mortgage payments directly to him/her…and may require significant, up-front fees. They’ll assure you that they’ll forward your mortgage payments on to your lender “for you”.
The reality is that the scam artist will likely pocket your money and leave you in even worse shape with your lender.
If someone tells you to stop making payments to your lender…or stop communicating with them, the US Department of the Treasury’s Office of the Comptroller of the Currency (OCC) says, “Don’t follow that advise”.
The OCC further advises that “your mortgage lender should be the starting point for finding options to avoid foreclosure”. And, “you should also consider contacting qualified and approved credit counselors”.
As always, check with your attorney, CPA, etc.