Wednesday, June 03, 2015

I have high hopes that those in trouble or upside down in their mortgages will get the help they need from a growing array of local, state and federal assistance programs. But one organization known as HOPE Services was recently busted by federal officials for offering and then failing to deliver mortgage assistance to troubled mortgage holders.

According the Federal Trade Commission, a group of companies and individuals doing business as HOPE Services told consumers facing foreclosure they could get help from legitimate, government-backed programs, like Making Home Affordable— but only after they made three monthly trial payments into a so-called mortgage lender’s trust account.

Then, says the FTC, HOPE Services pocketed that money, while strongly discouraging homeowners from talking to a lawyer or to their mortgage lender. All this, even as homeowners faced foreclosure notices and hearings.

In the end, HOPE Services provided no help for these homeowners, and the agency says financially-strapped people lost almost $2 million. That forced some into bankruptcy, and others ultimately lost their homes.

The FTC says before you buy into a mortgage relief program, look for these signs of a prossible scam:
 

• “Guaranteed” fixes. No one can guarantee they can stop a foreclosure.
• Fees up-front. Don’t pay in advance anyone who promises to stop a foreclosure or guarantees you a new mortgage.
• Stop paying, stop talking. Avoid anyone who tells you not to pay your lender, or not to talk with an attorney or your lender.
• Pressure to sign. Is someone rushing you, or asking you to sign over the title or deed of your house to someone other than your lender? Those are red flags.

If you think you’ve been the victim of a mortgage or foreclosure rescue scam, file a complaint right away at ftccomplaintassistant.gov.

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