If you or someone you know is struggling to make mortgage payments, you are far from alone. At the end of 2009, nearly one is six homeowners had defaulted on their mortgage. This means that millions of Americans will need help in stabilizing their financial situation. Unfortunately, it also means that many are falling victim to those looking to take advantage of this situation by exploiting homeowners who need real solutions.
The Obama administration has brought increased attention to mortgage modification as an alternative to foreclosure. The federal government has offered incentives for these modifications through its Home Affordable Modification Program (HAMP). Many lenders are now responding to the incentives by adjusting their polices on foreclosure avoidance.
But homeowners aren’t the only ones looking to benefit fromthis push to increase mortgage modifications. Scammers and con artists have come up with new and innovative schemes to benefit from vulnerable homeowners, and you need to know the red flags for such practices.
Only a select few homeowners can actually qualify for a mortgage modification, and such modifications are generally offered for only a trial period to see if the homeowner can actually keep up with the new payment. Here are some of the “Red Flags” to look out for in mortgage modification offers:
1. Always avoid offers to modify your mortgage in exchange for upfront fees. Any legitimate fees should only be paid after a successful modification has been completed.
2. Be suspicious of anyone who guarantees you a mortgage modification. Any such guarantee is unrealistic, and a fraudulant party will sometimes make this promise to make it appear as though they are providing a rare opportunity.
3. Certain frauds present themselves as government agencies or other authoratitive entities by creating websites with official-looking seals and content. Be sure to check the source out with the official website: http://makinghomeaffordable.gov.
4. Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house. Always seek legal counsel before proceeding with any action like this.
If you have any questions about avoiding mortgage scams, or if you need legitimate, professional help with avoiding foreclosure, please contact me, or visit my special website: http://www.hamptonroadshomerescue.com.
Maggi Davis 
Associate Broker
Keller Williams Realty
1709 Laskin Road
Virginia Beach, VA 23454
(757) 288-5547
www.maggidavis.com