Are you having trouble making your home
mortgage payments? Are you facing foreclosure on your
home?
Get all the facts before
you pay someone to help you work out your mortgage
problems!
"Bankruptcy foreclosure scams" target people
whose home mortgages are in trouble. Scam operators advertise
over the Internet and in local publications, distribute
flyers, or contact people whose homes are listed in the
foreclosure notices. Sometimes they direct their appeals to
specific religious or ethnic groups.
These scam operators may promise to take care
of your problems with your mortgage lender or to obtain
refinancing for you. Sometimes they also ask you to pay your
mortgage payments directly to the scam operator. They may even
ask you to hand over your property deed to the operator, and
then make payments to the operator in order to stay in your
home.
But instead of contacting your lender or
refinancing your loan, the scam operator pockets all the money
you paid, and then files a bankruptcy case in your name
sometimes without your knowledge.
A bankruptcy filing often stops a home
foreclosure, but only temporarily. If a bankruptcy is filed in
your name but you don't participate in the case, the judge
will dismiss the case and the foreclosure proceedings will
continue.
If this happens, you will lose the money you
paid to the scam operator AND YOU COULD LOSE YOUR HOME!
You will also have a bankruptcy listed on your credit record
for years afterward.
Proceed with care if an individual or
company:
-
Calls itself a "mortgage consultant,"
"foreclosure service," or similar name.
-
Contacts or advertises to people whose
homes are listed for foreclosure.
-
Collects a fee before it provides services
to you.
-
Tells you to make your home mortgage
payments directly to the individual or company.
-
Tells you to transfer your property deed or
title to the individual or company.
If you can't pay your mortgage, call your
mortgage lender or contact a lawyer for help. Your state or
local bar association may be able to help you find low-cost
legal help.
If you think an individual or company is
running a mortgage foreclosure scam, contact the local
office of the United States Trustee. The United States
Trustee is a Justice Department official who monitors the
bankruptcy system. Look for your local United States
Trustee's telephone number in your telephone directory or on
our web site at: www.usdoj.gov/ust.
