avoiding foreclosure scams
Phony Counseling or Phantom Help
Foreclosure rescue scams take many forms. One widespread tactic is known as “phony counseling” or “phantom help.” How does this type of scam work?
- The scammer offers to negotiate with your lender to reduce your mortgage payments, so you can save your home.
- The scammer offers to pay off your mortgage with his/her own money.
- The scammer offers to rewrite your mortgage, so that you can afford it.
“A” is the answer. These scammers sometimes claim they are attorneys or represent a law firm. They require an upfront fee in order to talk with your lender or they request you make your mortgage payments directly to them while they work on your case. They promise to take care of all the details once you pay the fee or payments, but once they have your money, they stop taking your calls and quietly disappear.