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Justin Pritchard

Watch for Mortgage Rescue Scams

By March 22, 2012

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If you want to bring a lawsuit against your mortgage lender, make sure you go about it the right way.

The Federal Trade Commission (FTC) reports that scammers are fraudulently promising to help homeowners sue their lenders. Of course there are high fees involved before anything happens, and of course nothing ever happens.

Be careful how you choose legal help -- your best bet is to get a recommendation from somebody you trust (or at least research and validate a potential law firm with a trusted source). Be careful of unsolicited offers that promise too much. Any honest lawyer will wait to hear the facts of your case before promising that you can win in court.

The Consumerist shares details of one of these mortgage relief scams; there are a few red flags that should make you slow down and take a closer look:

  • High up-front fees -- before any work is performed
  • Claims of high success rates
  • Rewards that sound too good to be true
  • Specific legal advice from people who are not licensed attorneys

To find reputable legal help, the FTC suggests that you do research through your state's bar association.

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