New foreclosure prevention programs cause scamming businesses to proliferate

Seems hard to believe but the new foreclosure prevention programs announced by the government (and covered in recent blog entries) have become a new opportunity for fee-charging organizations that claim to offer you speed and convenience in getting your mortgage terms modified.  California alone has listed more than 300 of these firms on a web site.

Typical charges start at $1,000 and go up.  Typical results according to many experts:  Zero.  You pay your money and you end up with nothing.

The Federal Reserve recently issued guidelines if you want to modify your mortgage.  They are simple.

  • Work only with HUD-approved nonprofit counselors, who usually do not charge fees.   (See our previous blog entry for several sources of these counselors.)
  • Never pay a fee before you are provided with the promised service.
  • Beware of people who offer guaranteed results.
  • Do not sign blank forms, or documents you have not read and understood.

We have commented extensively on foreclosure prevention programs, including the new government regulations. For more click to our Foreclosure category.

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