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Mortgage and Foreclosure Scams

At the LA-based foreclosure defense law firm of McFarlin LLP, we help homeowners protect their most precious assets in a hostile world of predatory lenders and scammers. Our robust practice consists of not only legal attorneys but also certified real estate brokers who stay abreast of the latest developments in the field. We are not a run-of-the-mill firm full of paper pushers; our expertise allows us to provide customized, holistic solutions for all of our clients. To speak with one of our nationally renowned associates today, call (888) 728-0044.

Watch Out for These Common Scams

Not all mortgage professionals are out to exploit prospective homeowners; many lenders are honest in their work and provide a vital service to families that don’t have the means to buy a home outright. However, as events of recent years will attest, predatory lending schemes are more prominent than they should be. When conducting a deal with a lender, be on the lookout for the following abusive practices:

  • Lease-back or rent-to-buy scheme: The scammer offers you better financing for your mortgage in exchange for the title to your home, with the added clause that you may purchase your home back when you have the means. Since you are technically the tenant in this deal, you may be evicted and lose your money if you do not meet the terms of the rent-to-buy agreement.
  • Bogus “government” modification programs: The scammer claims to be associated with the government and asks that you pay a fee to participate in a government modification program, although real government-approved programs don’t require a participation fee.
  • Refinance fraud: The scammer presents him/herself as an intermediary between you and your lender. S/he asks you to direct the payments to him/her, claiming s/he will negotiate a beneficial loan modification with the lender. However, the payments are actually not being sent to the lender, and your home is put at risk of being taken away.
  • False claims of debt elimination: There are no secret ways to eliminate your mortgage payments, although some companies may claim otherwise. Remember, if it sounds too good to be true …
  • Refinance scams: It is absolutely important that you closely read any documents before signing them. Some scammers have their victims sign fake “foreclosure rescue” loan documents when they are, in fact, deed transfer documents. These unfortunate homeowners only find out their mistake months or even years later when they are evicted.

General Tips to Go By

When seeking a loan counseling service or modification, avoid those who charge fees. Always, always know what you’re signing before you sign it; don’t just scan it, go over every single sentence twice, three times if necessary. And never sign over the deed to your home to an organization or individual, no matter what promises they make, unless it is your mortgage company.

Premier Affordable Legal Service

The compassionate legal staff at McFarlin LLP understands that you may not have the means to afford exorbitant attorney rates, especially since you’re struggling with your mortgage payments. We offer high quality services at a competitive rate. To learn more, contact our office today.

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