If you are a homeowner, you know that a mortgage is a big financial responsibility. Not only do you have to pay your mortgage on time every month, but you also have to be aware of the many scams that exist in the mortgage industry. One of the most common scams is the mortgage claims scam, where scammers target homeowners who are struggling to pay their mortgage and offer to help them avoid foreclosure. In this article, we will discuss what mortgage claims are, how to spot a mortgage claims scam, and how to protect yourself from becoming a victim.
What are Mortgage Claims?
Mortgage claims are legal claims that are made against a mortgage lender or servicer. These claims can be made by homeowners who believe that their lender or servicer has violated their rights under the law, such as by charging excessive fees or failing to properly process their mortgage payments. Mortgage claims can also be made by investors who have purchased mortgage-backed securities and believe that the loans underlying those securities were misrepresented or fraudulently originated.
How to Spot a Mortgage Claims Scam
Mortgage claims scams are designed to trick homeowners into paying money for services that they do not need or that are not legitimate. Here are some red flags to watch out for:
- The company asks for upfront fees before providing any services
- The company promises to stop foreclosure or modify your mortgage, but asks you to stop paying your mortgage or to make payments to them instead
- The company claims to be affiliated with the government or a government program, but cannot provide any proof
- The company asks for personal information such as your Social Security number or bank account information
If you encounter any of these red flags, it is best to avoid the company and report them to the appropriate authorities.
How to Protect Yourself from Mortgage Claims Scams
The best way to protect yourself from mortgage claims scams is to be informed and vigilant. Here are some tips:
- Do your research before working with any company that offers mortgage-related services
- Read reviews and check the company’s ratings with the Better Business Bureau
- Ask for references and contact them to verify the company’s services
- Never give out personal information without verifying that the company is legitimate
- Always keep up with your mortgage payments and contact your lender or servicer directly if you are having trouble making payments
By following these tips and staying informed, you can protect yourself from mortgage claims scams and other types of mortgage fraud.
Conclusion
Mortgage claims scams are a serious problem that can cause financial harm to homeowners who are already struggling to make their mortgage payments. By being informed and vigilant, you can protect yourself from these scams and avoid becoming a victim. Remember to always do your research, ask questions, and never give out personal information without verifying that the company is legitimate.