Foreclosure Scams versus Free Government Help with Foreclosure Problems

Scams preying on homeowners who are faced with the risk of foreclosure on their homes are springing up like weeds. The Office of the Comptroller of the Currency (OCC) of the U. S. Treasury Department has issued a Consumer Advisory (http://www.occ.treas.gov/ftp/ADVISORY/2008-1.html) telling people what to watch out for. The OCC charters, supervises, and regulates national banks. It is in the bank’s interest to help you keep your home if at all possible. But if your bank or the lender who holds your mortgage will not cooperate with you, there are still alternatives. Above all, do not become a victim of a scam.

First and foremost, beware of foreclosure prevention specialists who charge enormous fees to do what homeowners can do for themselves. or what is freely available. Secondly, don’t sign anything without having someone you know well and trust check it over first, preferably a lawyer.

Whether or not your lender helpful, at the minimum, you can call Hope for Homeowners at 888-995-HOPE or go to their Web site for a counseling session at no cost to you. The sooner you call after you realize that you are in trouble, the more options will be open to you. As of March 19, 124,000 homeowners had called that number, which offers assistance 24 hours a day, seven days a week. Or call HUD (Housing and Urban Development department of the Federal Government) at 800-569-4287, or visit the HUD Web site (www.hud.gov/foreclosure).

Details taken from the Consumer Advisory on how to protect yourself from scams and where to get legitimate help follow.

HOW TO FIND LEGITIMATE HELP FOR YOUR FINANCIAL PROBLEMS
Contact your mortgage lender or mortgage servicer as soon as you think you are unable to make your mortgage payment. Lenders are often in the best position to help, especially if you are current on your loan or not seriously late on your payments. Your mortgage lender or mortgage servicer may be able to identify options to help you bring the loan current or to modify your loan.
Contact a legitimate housing or financial counselor to help you work through your financial problems. To find one:
□ Call (800) 569-4287, or visit www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm to find counselors approved by the U.S. Department of Housing and Urban Development (HUD).
□ Call the Homeownership Preservation Foundation at (888) 995-HOPE, or visit http://www.995hope.org/, to reach a nonprofit, HUD-approved counselor through HOPE NOW, a cooperative effort of mortgage counselors and lenders to assist homeowners.
Visit the following Web sites for information:
□ NeighborWorks America, www.nw.org/network/home.asp.
□ Federal Trade Commission, www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm.
Finally, if you have a complaint or question involving a national bank and cannot resolve it directly with the bank, contact the OCC’s Customer Assistance Group by calling (800) 613-6743, by e-mailing customer.assistance@occ.treas.gov, or by visiting http://www.helpwithmybank.gov/.