As most know, if you don’t or can’t pay your monthly mortgage, you’re in danger or defaulting on your loan, thus losing your home! The first step if you feel like you are in this situation, is to contact your mortgage company if you feel like you are in danger of missing or continuing to miss your mortgage payments. Constant communication with any creditor is crucial in preventing from putting yourself in a more complicated financial hardship. Let them know your circumstances and try and make arrangements directly with the mortgage company. Local community resources like Iowa Legal Aid and Iowa Mortgage Help are there to assist with resources you may need if you are in danger of foreclosure. https://www.iowamortgagehelp.com/ Their trained counselors will help you identify the course of action that is most appropriate for your situation. A not new, but ongoing threat that is confusing consumers and scamming them out of hard earned money, are mortgage scams! You’ve seen the commercials, saw the signs and probably know someone who unfortunately has been a victim of a mortgage or housing scam. There are a few things that you can do to help protect yourself from these scams and get the assistance you need. The first question however, is how do you spot a housing scam? 1. The company/person asks you for a fee – Don’t pay for service that you unsure of or haven’t received. 2. A company/person promises that they can save you from a foreclosure 3. A company/person advises you to stop paying your mortgage or landlord and pay them instead. (Source: NeighborWorks Spot A Scam - https://www. neighborworks.org/spotascam) Take notes! Make sure you document who you supposedly talked to, what company they claim to be with and a phone number they called from. This will equip you with the information to report the scam. Here a few of the type of scams that are beginning to creep into the market. Refinance Scams: While refinancing is a legitimate option with most lenders, watch out for people posing as mortgage brokers or lenders. They will most often present you with “refinance paperwork to bring your mortgage current” when in reality, they are having you sign to surrender ownership of your home. The scammer is betting on the fact that you trust them and will not read all of the fine print. Once that new deed is executed, down the road you will receive notice and discover that your home is no longer yours! Internet and Phone Scams: We all get some sort of spam on a day to day basis in this day in age and how do you know what’s legitimate?? Since we heavily rely on technology to get the information that we need and want, this is the easiest way for scammers to get what they want, when they want. Often the scammers convince you to pay some fee over the phone or ask you to relinquish personal information. Bank account numbers and social security numbers are often given to these spammers to transfer payments to a phony company. This will cause even more trouble because now your personal details have been stolen, putting you at risk for identity theft. Audits: This scam is also a heavy hitter in today’s scam base and that is where a scammer will call and state that they are mortgage loan “auditors” or “foreclosure prevention auditors” They supposedly reviewed your mortgage documents to make sure that your mortgage company complied with the law. They say that they can help you avoid foreclosure and lower the amount you owe. Don’t fall victim to these scams and be sure to report them to the proper authorities such as: The Federal Trade Commission at ReportFraud.ftc. gov Iowa State Attorney General https://www. iowaattorneygeneral.gov/for-consumers The more they are reported, the more the Federal Government can crack down and keep consumers safe! 31
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