Beware of Foreclosure "Rescue" Scams

As the foreclosure crisis bears down on Texas, scam artists are actively trying to profit by offering fraudulent "mortgage rescue" services. Many of these services collect fees from homeowners facing or at risk of foreclosure, and promise to prevent the foreclosure, or salvage the homeowner's credit. Instead, they often speed the foreclosure process by taking excessive fees and advising the consumer to avoid speaking to their mortgage lenders. This is bad advice!

Texas Courts and the Office of the Attorney General are cracking down on foreclosure scams. Do not believe a salesperson who tells you that he or she can avert the foreclosure of your home for a fee. Do not believe that a "real estate investor" has your interests at heart when he or she contacts you out of the blue. Foreclosure postings are public record, and land sharks with firm handshakes and a few dollars are out to siphon the equity from your home, and profit from your financial distress!

Never withhold a mortgage payment if you can possibly pay. Late payments are better than none, and in most cases where homeowners lose their homes to foreclosure, the problem began with a single missed payment. If you are at risk of foreclosure you should contact your lender to try and make arrangements. Lenders are aware of the foreclosure crisis, and in many instances they will work with you!

Also, if you have problems that could result in mortgage default or foreclosure, you should consider contacting a HUD approved counseling agency. You can find an approved counseling agency by calling (800) 569-4287, or by visiting HUD's website at www.hud.gov/foreclosure/index.cfm. You can also contact the Homeowner's HOPE Hotline at (888) 995-HOPE (4673). This toll-free number is operated by the Homeowners Preservation Foundation and Neighborworks America, two national nonprofit organizations that specialize in mortgage issues.

The days of the benevolent home rescuer are gone! Beware of strangers promising to "help" you avoid foreclosure. There are many legal pitfalls associated with selling your home out of foreclosure, and your credit is the most likely casualty of any effort by you to sell or transfer the home to avoid foreclosure. If you are considering selling, transferring or walking away from your home to avoid foreclosure, contact an an attorney like Trey Wilson, who is knowledgable in the areas of foreclosure, mortgage agreements, and property transfers.