Loan Scam Tips
If you're struggling with your mortgage or trying to get your mortgage reduced, you can find help, free of charge, from HUD-approved counseling agencies. Visit our network directory
to find one near you.
To speak with a housing counselor 24 hours a day or find a local agency, call 888-995-HOPE (4673).
Loan Scam Alert PSA
Loan-modification scams take many forms: Some mimic government foreclosure-prevention programs, others guarantee to stop foreclosure for a significant fee, and still others strip the homeowner of equity or of the home itself.
Were you scammed by a lawyer? If you lost money to a lawyer who promised to get you a loan modification or save your home from foreclosure, you may be able to get your money back.
Every State Bar has a client security fund
. This fund reimburses clients (up to varying amounts) for being victims of dishonest licensed/state barred attorneys. Find the client security fund in your state
6 Ways to Spot a Scam
9 Most Common Loan Scams
Working with Lawyers
Working with your lender or a HUD-approved counseling agency for a loan modification or to stop a foreclosure is free
. But if you prefer to pay a company, know the warning signs
. Watch out if the company name or company website suggests it has lawyers or provides "legal" help.
There may be times when you want to pay a local, licensed lawyer to represent you. But ask questions first and AVOID any company offering legal help if:
- You have not met with the lawyer.
- The company's office is not in your state, or you don't know where it is located.
- The lawyer is not licensed to practice law in your state, or you haven't checked where he or she is licensed.
- The lawyer does not represent you in any legal proceedings or you cannot verify it.
- You are told to send your documents to a company office in another state.
- The person offering legal help guarantees you will get a loan modification.
- A lawyer you don't know reaches out to you and wants you to hire him or her.
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