• 29
  • November
    2011

If you have fallen behind on your home payments, the possibility of losing your home to foreclosure can be very frightening. This fear can turn to desperation, making you vulnerable to mortgage modification scams. Knowing how the most common scams operate can help protect you from becoming a victim of mortgage fraud in Arizona - after all; there are other ways to stop foreclosures than succumbing to mortgage scams.

How the Scams Work

Most foreclosure and mortgage modification scams work the same way. They generally involve a foreclosure "rescue" or loan modification company. These companies are often not interested in helping you out with your situation, but want to make a quick profit.

These companies generally promise to help you save your house or stop the foreclosure. They may advise you to quit working with your lender and promise that they will take care of everything. However, the companies rarely will deliver on their promise and leave you in a position worse than you were in before.

Warning Signs

If a company contacts you and offers to help you with your foreclosure situation, there are several warning signs indicating that the offer may be a scam. The Arizona Attorney General advises you to be skeptical of any company that:

  • Asks you to send your mortgage payments to them instead of your lender
  • Offers to fill out paperwork for you
  • Asks for a fee before providing any services
  • Asks for payment by cashier's check or wire transfer only
  • Asks you to lease your home so you can buy it back over time
  • Asks you to sign over your deed or title to your home
  • Asks you to sign paperwork before you've had a chance to read it

If you are having problems paying your mortgage or are facing foreclosure, an experienced attorney can advise you of your options and devise a legal way to save your house - for example there are several options available under bankruptcy law that may help save your home.