Positive Real Estate Professionals

Desperation is an awful feeling. At some point in our lives most of us have felt desperate about something; be it that final exam, theft of a credit card while on vacation, or a job loss. It is also a sad truth that some scammers and cons use this very desperation to prey on people when they are most vulnerable. In many cases, those who feel they are in a desperate situation just want to feel some amount of control so they may accept certain assumptions or propositions that they might otherwise dismiss out of hand. During this vulnerable time it is important to explore options that are available to help restore your sense of control and stability. It is also important that you arm yourself with tools to help insure that your vulnerability does not permit you to make normally unthinkable decisions. In the following article Fred Chamberlin discusses some steps that homeowners who are facing foreclosure can do to protect themselves.

As always, please ask if you have any questions concerning this or any post on PREP.

Via Fred Chamberlin of EugeneLoanGuy on Neighborhood Expert Online:

Tomorrow is the last day of National Consumer Protection Week and the Federal Reserve Board has compiled some items to protect consumers from becoming victims of foreclosure avoidance scams. Reports of mortgage foreclosure scams are on the rise. Knowing what to watch for and where to turn for help is vital for families who are struggling to remain in their homes. It’s important for consumers to know that housing counselors and other resources are available at no or low cost to assist homeowners who have fallen behind on their mortgage payments. One note before we get into the following information, the best and safest way to avoid foreclosure is to make your payments on time.

Solicitors of foreclosure schemes reach out to potential victims by a variety of means using the Internet, the telephone, and direct mailings. Some solicitors go door-to-door or approach homeowners at events related to home preservation. The information the Federal Reserve is providing, which is part of its “5 Tips” series, is intended to give consumers the basic information they need to recognize and avoid foreclosure avoidance scams. Consumers are urged to check the credentials of counselors and to avoid working with someone who collects a fee before providing any services or accepts payment only by cashier’s check or wire transfer. Consumers should not pay for a service without knowing exactly what they are buying.

“Saving a home from foreclosure requires fast and informed action but the solution doesn’t have to be costly,” said Federal Reserve Governor Elizabeth A Duke. “It shouldn’t hurt to get help.” Avoiding foreclosure cannot be guaranteed–regardless of the circumstances. Working with a legitimate counselor can increase the chances of keeping a home, but consumers should be wary of people who tell them it’s a sure thing. Details of the transaction, along with any promises, should be provided up front and in writing.

The tips to follow from the Federal Reserve Board will help consumers select a reputable counselor and avoid fraudulent foreclosure scams.

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.

1. 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.

1. 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.

1. 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.

1. 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 webpage 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.

Protection of your rights in a foreclosure procedure is very important. Make sure you make use of the programs and organizations that are available to help you. The Oregon Department of Insurance and Finance also has some very good information on their website about things you can do to avoid foreclosure. Here is a link to their PDF pamphlet about how to avoid foreclosure.