|Fed Provides Tips on Avoiding Mortgage Scams
Reports of mortgage foreclosure scams are on the rise, and the Federal Reserve Board has compiled some tips to help protect consumers from becoming victims of foreclosure avoidance scams. 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.
"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."
Fraudulent approaches come in several forms
The Fed is also urging consumers to check the credentials of counselors and 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.
Working with a legitimate counselor can increase the chances of keeping a home, but consumers should be wary of people who tell them that saving their home is a sure thing. Details of the transaction, along with any promises, should be provided up front and in writing.
Advice for protecting consumers given
March 31, 2009