They make easy prey for scammers, who've been busy promoting mortgage modification and foreclosure rescue schemes. The government recently announced mortgage help programs, but the scammers send you down a different - and more expensive - path.
Regulators are hoping to change that with aggressive programs announced today. They've already warned firms that pretend to look legitimate with official sounding names, and they'll work with lenders to try and eliminate problems at the source.
Some red flags include operators who guarantee they can help you, loud advertisements, and the requirement to pay a fee up front.
According to Bloomberg, quoting Illinois AG Lisa Madigan,
“Paying money upfront for mortgage rescue services is a clear sign of a rip-off and it is also illegal in most states.”
If you want help, and you really want to investigate the government sponsored programs, start at www.makinghomeaffordable.gov or 888-995-HOPE.
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