Tips on How to Avoid a Loan Scam

Fraud is on the rise and loan scams are not always easy to spot. The following list contains some warning signs of loan modification scam artists:

• You are asked for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.

• The company only accepts payment by cashier's check or wire transfer

• A company guarantees they can stop a foreclosure or get your loan modified.

• You are advised to stop paying your mortgage company and pay them instead.
  

• They instruct you not to contact your lender, lawyer, or credit or housing counselor.

• A company pressures you to sign over the deed to your home or sign any paperwork that you have not had a chance to read or do not fully understand.
  

• They tell you to sign documents with blank lines and spaces.

• They offer to complete paperwork for you.

• They encourage you to sign over your title in order to "lease" your home now and buy it back over time.

• A company claims to offer "government-approved" or "official government" loan modifications.

• Someone you do not know asks you to release personal financial information online or over the phone.

• They offer to give you a "second opinion" on a denial of your loan modification application, for an upfront fee.

If you think that you have been scammed, report it! call 1-888-995-HOPE