Foreclosures are currently at an all time high, home values are rapidly declining, and the housing market is unstable at best. These times have created stressful, and huge financial problems for homeowners all across the country. Unfortunately, some homeowners are being taken advantage of, and it could cost them their home, a lot of money, or both. Here are some of the most popular scams a homeowner may be lured into when facing foreclosure or mortgage modification.

1)Know the Methods of Advertising Most Common for Scam Artists and Con Men
The most common methods mortgage scams use to contact homeowners is through mail, email, and phone solicitations. A lot of scam artists also use television and radio commercials with nice, slick sales pitches with huge promises for homeowners.

Most of the time, these scams are based around the fact that the company you are working with is not a mortgage lender or bank at all. They often disguise themselves as mortgage consultants. This is an extremely broad title, and means absolutely nothing. They will charge homeowners thousands of dollars and promise that they can find them a good mortgage interest rate, an approval, or lots of other things. They rarely come through with what they promised, and do they exact same job you are able to do easily and for free, and get the same results.

2)Homeowners should check into the credentials of any mortgage companies or professionals.
Your home is the most expensive thing you will ever own in your life. Do not risk it to a fly by night company with no reputation or history. Always perform checks on potential mortgage lenders and look for warning signs it may be a scam.

-You should check is that the company is actually on record with your state.

-Check the companies performance record with the state, and how long they have been in business.

-Be sure to know whether or not they are considered a non profit or for profit company.

-Be sure to check the individuals references and experience.

-Ask for the name of the legal consultant who will be handling the closing and paperwork.

3)How does this scam work?
Typically, these scam companies will request a large, non refundable, up front fee. For this fee, a scam artist will claim that the costs of refinancing or home loan modification are covered, and no extra money is needed. They claim to know how to work the mortgage lender or banks in your favor, and that they can get you a great deal. In reality, they do very little, if anything at all. They usually do not have the know how or experience needed to properly find good deals for homeowners. If they do anything at all, you can do the same thing for free in 15 minutes or less.

Always remember that if it sounds to good to be true, it probably is. Do not fall victim to predatory mortgage lenders. Protect yourself.

-M Petrone
http://www.RefinancingCondo.com

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