With so many scams and non-reputable companies competing for homeowner attention during their toughest times, many people have become fearful of seeking help with their mortgage debts. Recent reports of foreclosure scams and mortgage modification schemes have tarnished the good name of many legitimate companies that offer invaluable services to homeowners in need. Before you shy away from a potential lifeline, get to know what to look for and the right questions to ask to protect yourself when shopping around for mortgage relief options.

Full Disclosure

The Federal Trade Commission has been putting in long hours to help ensure homeowners become educated about their rights and how to spot a mortgage fraud. One of the most telltale signs of a non-reputable company is one that does not follow the rules. More specifically, any company that does not offer full disclosure as required by the FTC should signal a warning flag in your head. Companies are required to disclose the following information to all consumers:
They are not associated with the government, nor have their services been approved by the government
They cannot guarantee your lender will approve of, or agree to, modifications to your loan
They do not advise you to stop paying your mortgage; unless they also inform you that doing so could result in losing your home and damaging your credit
They do not advise you to stop communicating with your lender

If a company you are working with has not informed of you of any of the above information, cease all interactions with the company and report them to the FTC. The FTC investigates complaints and reviews the legitimacy of service providers to prevent consumers from becoming victims of a scam. If you feel you have been victim to a fraudulent company, you have the right and responsibility to report it to the FTC.

Payment For Services

Another common give away of an illegitimate company is one that requires full and upfront payment. While many people assume this is normal for mortgage modification or foreclosure assistance services, the truth is that consumers have the right to pay after services have been successfully rendered. Upfront payment is never a requirement and should not be an issue pushed by the mortgage relief company. In fact, you should never pay for services unless you have (1) received a written offer by your lender and (2) accepted the offer in writing.