Beware of Foreclosure Scams

Tips for Avoiding Mortgage Modification Scams 

If you are struggling to pay your mortgage, keep the following tips in mind: 

• To find a HUD-approved housing counseling agency near you, access HUD's database for Foreclosure Avoidance Counseling. 

• Only your mortgage servicer has the discretion to grant a loan modification. Therefore, no third party can guarantee or pre-approve your HAMP mortgage modification application. 

• Beware of anyone seeking to charge you in advance for mortgage modification services. In most cases, charging fees in advance of a mortgage modification is illegal. 

• Paying a third party to assist with your application does not improve your likelihood of receiving a mortgage modification. Accordingly, beware of individuals or companies that ask you for payment and tout success rates or claim to be experts in MHA's Home Affordable Modification Program (HAMP). 

• Beware of individuals or companies that offer money-back guarantees. 

• Beware of individuals or companies that advise you as a homeowner to stop making your mortgage payments or to discontinue contact with your mortgage servicer.

• Do not sign over the deed to your property to any individual or organization unless you are working directly with your mortgage company to forgive your debt. 

To report illicit activity or suspected scams: 

• Bureau (CFPB) 

• The Federal Trade Commission (FTC) 

• Submit a CFPB complaint online with the Consumer Financial Protection Bureau 

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This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship. 

For more information on this and other topics, please contact Kevin via any of the channels listed below:

📧 kevin@kmckernan.com  | 📞 718-317-5007