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Avoid Being a Victim of a Mortgage Relief Scam

In recent years, times have been tough for homeowners and many have fallen into distressed situations such as foreclosures and short sales. While honest homeowners are seeking assistance and trying to get current on their payments, there are some companies who take advantage of trusting and desperate homeowners and make their situations even worse. The Memphis local movers know what a vulnerable position it is to have a distressed mortgage, so we want to help you avoid being the victim of a scam on top of that.

Here are some of our tips to protect yourself and your finances:

Do not pay anything up front. Companies who ask you for money prior to doing any work should raise a red flag. Some loan modification companies charge high fees, up to $5,000, with no actual benefit. If a company promises to reduce your debt on a home loan, ask for references and never put money down until you see results.

Do not think this exempts you from foreclosure. If you have already been receiving delinquency notices, you might be on the brink of foreclosure—at which point you need to work directly with the bank or lender rather than an unknown third party. There is no protection when working with a company outside of the loan situation.

Ask away, Don’t feel the need to suppress questions. This is your home and your financial clout on the line, and you should ask as many questions as you need to in order to feel comfortable with a company and an arrangement. Find out what they are promising you, what your obligation is, and what happens if they don’t deliver.

Be on the lookout for common red flags. Don’t hire anyone without researching them, and if you want additional peace of mind you should have a skilled attorney read through your potential agreement and explain what your responsibilities will be.

Remember, if something sounds too good to be true, it probably is. Protect yourself and always educate yourself before assuming people are out with your best interest in mind. Nowadays, that just isn’t the case in many situations.