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We know our Boston home buyers, home owners and home sellers are smaahht, and very busy.  You’re juggling work, family, finances and life in general. In the midst of all this, you are trying to obtain a new mortgage, refinance, or possibly rescue your home from potential foreclosure. Needless to say at this point, your keen senses may be temporarily dulled, leaving an opening for a savvy scammer to gain your attention.

Don’t panic! We will help you get your spidey senses back!  Here are some tips to help you sniff out a scan before it’s too late.

If a company and/or person tell you or ask you to do any of the following, watch out!

Guarantees they can stop a foreclosure or get your loan modified.

Please understand that nobody can guarantee to stop foreclosure or modify your loan. Legitimate, trustworthy HUD-approved counseling agencies will only promise to help you find a solution that works best for you. 

Advises you to stop paying your mortgage company and pay them instead. They will also advise that you stop communicating with your current lender so that they can negotiate for you.

Despite what a scammer will tell you, never send a mortgage payment to anyone other than your mortgage lender.  The minute you have trouble making your monthly payment, contact your mortgage lender. Staying in contact with your mortgage lender is an important way to show them good faith and effort on your part.

 Pressures you to sign over the deed to your home or sign any paperwork that you have not had a chance to read or do not fully understand.  

A legitimate housing counselor would never pressure you to sign a document before you had a chance to read and understand it.  Scammers deceive homeowners into signing over the deed to their home and tell them they will be able to remain in the house as a renter and eventually buy it back.  Usually, the terms of this scheme are so demanding that the buy-back becomes impossible.  Therefore, the homeowner gets evicted, and the "rescuer" walks off with most or all of the equity.

Asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may also offer to give you a “second opinion” on a denied loan application.

They may pocket your money and do little or nothing to help you save your home from foreclosure.  Free HUD-certified foreclosure assistance is available.   Never pay for a "second opinion" if you have been turned down for a loan modification. 

Tells you to sign documents with blank lines /spaces stating they will complete it at a later date.

Scammers often add information later without your knowledge or approval. Make sure there are no empty spaces or lines on any document you agree to sign. Having an additional person with you to double check is often very helpful.

Claims to offer "government-approved" or "official government" loan modifications. 

Scam artists pose as legitimate organizations approved by, or affiliated with, the government. Contact your mortgage lender first, they can tell you whether you qualify for any government programs to prevent foreclosure. Please note:  you do not have to pay to benefit from government-backed loan modification programs.

Sadly, these are only a few of the most commonly reported mortgage related scams out there. Seek advice from a knowledgeable, well established Boston real estate professional before entering any type of real estate agreement. Also please visit http://www.preventloanscams.org/ to learn more about mortgage and loan fraud.