Mortgage Relief Scams on the Rise

In addition to the toll the COVID pandemic has taken on the health and wellbeing of countless lives, the impact on individual and family finances has been significant as well.
 
As the pandemic continues, many people have fallen behind on their mortgage payments – a reality that has given rise to an increasing number of mortgage relief scams.
 
Beware of promises and guarantees
The old adage “if it sounds too good to be true it probably is” makes a lot of sense when considering any kind of mortgage relief offer.
 
Anyone who guarantees they can stop your foreclosure is not legitimate. Similarly, anyone who wants to charge you in advance of receiving their help is also not to be trusted in any circumstance.
 
Other red flags
The Consumer Financial Protection Bureau (CFPB) has identified some tell-tale red flags to help you identify and, equally important, avoid mortgage relief scams.
  • You’re asked to pay up front for help
  • There is a guarantee that the company will be able to change the term of your mortgage
  • The company guarantees you won’t lose your home
  • You are told to stop paying your mortgage
  • Instructions that tell you to send your payment to someone different from your mortgage company or servicer
  • The company claims to be affiliated with the government or uses a logo that looks like a government seal but is slightly or significantly different
Any one of these red flags is enough to let you know the company is not legitimate and should be avoided.
 
Mortgage Relief Due to COVID-19 May Be Possible
If you are experiencing financial hardship because of the COVID-19 pandemic, you may have the right to either temporarily pause your monthly mortgage payments or have your monthly mortgage payments reduced. For more information about COVID housing protections, deadlines and more, the CFPB encourages you to visit consumerfinance.gov/housing.