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Beware of Loan Scams: Tips & Warning Signs

Scam artists are stealing millions of dollars from distressed homeowners by promising immediate relief from foreclosure, or demanding cash for counseling services when reputable counseling agencies are providing high-quality, trustworthy help to homeowners for FREE. NeighborWorks America-certified and HUD-approved counselors are trained and certified to help distressed homeowners assess their situations and take action.
If you receive an offer, information or advice that sounds too good to be true, it probably is. Don’t let them take advantage of you, your situation, your house or your money.
Remember, trusted counseling help is readily available and. . .FREE!
Beware of Company or Person Who:
- Asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.
- Guarantees they can stop a foreclosure or get your loan modified.
- Advises you to stop paying your mortgage company and pay them instead.
- Pressures you to sign over the deed to your home or sign any paperwork that you haven’t had a chance to read, and you don’t fully understand.
- Claims to offer “government-approved” or “official government” loan modifications.
- Asks you to release personal financial information online or over the phone, and you have not been working with this person and/or do not know them.

NYMC member Housing Action Council provides trusted counseling help to assist homebuyers who have been caught in these scams. Contact Housing Action Council at (914)-332-4144 or email Frengiz Surty at fsurty@affordablehomes.org.