The DRE (department of real estate) recently issued a new Consumer Alert, providing tips to help consumers avoid falling victim to loan modification and mortgage relief scams. The typical scam involves the promise of a loan modification or other mortgage or foreclosure relief in exchange for an upfront fee. However, once the fee is paid, little or nothing is done to help the homeowner.
Tips offered in the Alert include:
- Never pay an upfront fee for loan modification services.
- Watch for promises of guaranteed success
- Be on the look out for testimonials that sound too good to be true
- Verify licenses and disciplinary records of those offering the services
- Perform Internet searches
- Contact a HUD-approved counseling agency
click for full article of alerts opens into a pdf