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Loading ...Probably you are tired of listening to a lot of people saying, “We can stop foreclosures!” They offer endless promises to homeowners who can no longer afford to pay the mortgage, thus making them at risk in foreclosure.
Federal Trade Commission has created a new arrangement which gives warning to companies that promise to stop foreclosures: If they get cash from a consumer right away and made a vow to save the property, make sure to have it done, or they might be convicted of operating a scam company which breaks the federal rules for their personal gain.
FTC filed against Mortgage Foreclosure Solutions Inc., a company located in Florida, for running a plan of offering foreclosure assistance nationwide via 6 websites.
Consumers paid thousands of dollars to the company, but their properties still went into foreclosure. Some fixed the problem on their own without getting any help from the company.
FTC Assistant Regional Director Cindy Liebes said that a lot of schemes are now increasing nationwide due to unemployment, property estate flop and recession. Those companies would victimize scared and vulnerable homeowners.
They do not have any special skills to make arrangements with the bank. They will just take the homeowners’ money and basically do nothing at all.
FTC gathered a number of “red flag” signs for the homeowners to know whether or not the company they are dealing with is a scam.
- Giving guarantees that they can stop foreclosure regardless of the situation.
- Demands for a payment before doing the services offered. There are states that do not allow foreclosure saving companies to collect money before doing anything.
- Telling the homeowners not to call their lenders or banks and just leave everything to the company instead.
- Requiring homeowners to send mortgage payments to the company address and not to the bank or lender.
- Companies asking homeowners to give them their property deed or title.
Want to avoid more problems in foreclosure properties? Be aware of these signs.
