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Avoiding Foreclosure

FREQUENTLY ASKED QUESTIONS


Will It Cost Money to Get Help?
There should never be a fee from your lender or qualified counselor to obtain assistance or information about foreclosure prevention options. However, foreclosure prevention has become a target for scam artists. Be wary of companies or individuals offering to help you for a fee, and never send a mortgage payment to any company other than the one listed on your monthly mortgage statement or one designated to receive your payments under a state assistance program.

What is foreclosure?
Forfeiture of your home through a legal process where your mortgage company repossesses the property and you will have to move. This process may involve an eviction, you may remain liable for your first lien mortgage debt and it may be as long as seven years before you are eligible for another loan.

Will the Foreclosure Process Begin If I Do Not Respond to My Lender’s Notices Regarding Missed Payments?
If you do not respond to your lender’s notices to you regarding past due payments, your lender may refer your loan to foreclosure in accordance with your mortgage loan documents and applicable law.
 
Should I Still Contact My Lender if I Have Waited Too Long and My Property Has Been Referred to an Attorney for Foreclosure?
Yes, the sooner the better!
 

BEWARE OF FORECLOSURE PREVENTION SCAMS


Scam artists have stolen millions of dollars from distressed homeowners by promising immediate relief from foreclosure, or demanding cash for counseling services when HUD‐approved counseling agencies provide the same services for FREE. If you receive an offer, information or advice that sounds too good to be true, it probably is. Don't let them take advantage of you, your situation, your house or your money. Remember, help is FREE.
 
How to Spot a Scam – beware of a company or person who:
  • Asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.
  • Guarantees they can stop a foreclosure or get your loan modified.
  • Advises you to stop paying your mortgage company and pay them instead.
  • Pressures you to sign over the deed to your home or sign any paperwork that you haven't had a chance to read, and you don't fully understand.
  • Claims to offer "government‐approved" or "official government" loan modifications.
  • Asks you to release personal financial information online or over the phone and you have not been working with this person and/or do not know them.
How to Report a Scam – do one of the following:
  • Go to www.preventloanscams.org and fill out the Loan Modification Scam Prevention Network’s (LMSPN) complaint form online and get more information on how to fight back. Note: you can also fill out this form and send to the fax number/e-mail/address (your choice!) on the back of the form.
  • Call 1(888)995‐HOPE (4673) and tell the counselor about your situation and that you believe you got scammed or know of a scam.