It is hard to believe that there are people out there who have no qualms about taking advantage of the already distressed. Every day scammers target the unfortunate folks who are struggling to stay in their homes by deliberately combing public foreclosure notices to find their victims. Despite the government’s efforts to crack down on loan modification fraud or foreclosure rescue scams, you need to be cautious. If you are a candidate for a mortgage modification, be aware of scammers who will only take your money without delivering on any of the promises they lured you in with.

Be critical

Because scammers have become more sophisticated, they have learned to sell themselves as a seemingly legitimate entity. In fact, they have become so good at it that it also has become difficult to immediately pick out the bad apples. Be aware of companies which affiliate themselves with the government or have company names that are similar to reputable companies or resemble government initiatives. The administration’s mortgage modification initiative, Making Home Affordable, is the legitimate source. Familiarize yourself with the web site of the Treasury Department’s Office of the Comptroller of the Currency to learn more about scams so that you can more easily identify a copy cat con artist. Never trust anybody who requests personal financial information or any fees upfront.

Do not pay for help

Scammers will ask you to pay them in advance with the promise to get you out of trouble. You will most likely never see that money again, nor will you be helped. A legitimate or governmental source will not ask to be paid in advance. In fact, HUD-approved counseling agencies offer free foreclosure prevention counseling.

Do not transfer the property deed

One of the ugliest tricks is to convince homeowners to transfer the property deed to the scammer. The selling point of this idea is that the scammer will buy the home and let you rent it from them with the option to buy it back later. The scammer’s argument that giving the title to a new borrower with a better credit rating will help secure financing thus preventing loss of the home is completely unfounded and just not true. Instead of selling it back to you later, the scammer will most likely sell the home to anybody, or take the title, any equity in the home and squeeze more fees out of you and then just run. If you come across anybody requesting to transfer your property deed to their name, report them to the FTC.

Do not believe their lies of shortcuts

Foreclosure proceedings, mortgage modification requests and any other legal procedure implicating your property are complex procedures involving many parties, dates and therefore require time. Anybody who makes promises of a quick fix or instant debt relief cannot be trusted.

Stay away

Stay away from anybody who makes any claims that sound too good to be true. They probably are. Companies who affiliate them with the government should raise a red flag. Do not talk to third parties who single-handedly guarantee you an instant loan modification. Stay away from companies that offer to collect your mortgage payment while negotiating a mortgage modification and be sure to only send your mortgage payment to your mortgage company. Finally, stay away from businesses or counselors who tell you not to contact your lender, lawyer, or credit or housing counselor.