Avoiding Foreclosure Scams in Florida

Sarasota Foreclosure Defense Attorney

Facing the possibility of foreclosure can be terrifying. Many unscrupulous companies and scam artists are taking advantage of frightened homeowners by offering mortgage modification and foreclosure rescue services. Many companies say they can get a change to your loan that will reduce your monthly mortgage payment or take other steps to save your home or reduce the amount that you owe. Some even claim that they can cancel or rescind your mortgage by using legal loopholes. Others claim to be affiliated with a government agency or your lender, or tell homeowners that they have some special relationship with their bank that gives them some special ability to obtain results. These companies often advertise on television or the internet. They may also claim to be associated with attorneys or have attorneys on staff to assist you. Most often, these claims are completely false. They promise relief, but don’t deliver. Many of these companies leave their "clients" in worse financial shape.

Don't fall for these schemes by scam artists and predatory mortgage modification companies!

The Federal Trade Commission (FTC) is the federal government's consumer protection agency. The FTC gas enacted rules that help protect homeowners. For example, the Mortgage Assistance Relief Services Rule (MARS) makes it illegal for mortgage modification companies to collect any fees until a homeowner has actually received a modification offer from their lender that they choose to accept.

Important Recommendations

Scam artists and unscrupulous companies market their services aggressively. They advertise on television and the internet. They call homeowners on the telephone and send them personalized letters in the mail. They use slogans and advertising claims such as:

"Over 90% of our customers get loan modifications!"
"100% money back guarantee!"
"We have a special relationship with the banks that can speed up the modification process!"
"We can stop foreclosure - guaranteed!"
"We can save your home from foreclosure and even cancel your mortgage!"

Once these scam artists capture your attention, they give you the "hard-sell" and convince you to pay them a fee for their services. These companies often tell homeowners that, in exchange for a large fee, they will negotiate a deal with the bank that will drastically reduce what you owe and save your home from foreclosure. Sometimes phony mortgage counselors will insist that you make your monthly mortgage payments directly to them instead of the bank while they negotiate. All too often, these companies will take your money for a few months and then disappear without having done any meaningful work on your behalf.

Homeowners should not work with anyone who is not a licensed Florida attorney .

Here are some red flags and warning signs that should alert you to potential scams:

The company offers a "forensic loan audit" for an up-front fee. According to the FTC, there is absolutely no evidence that forensic loan audits are of any benefit in obtaining a mortgage modification or other mortgage relief. These "forensic audits" are generally of no value whatsoever and often contain information that is wrong, misleading and does not accurately reflect the state and federal laws they supposedly address.
Con artists offer you a "rescue loan" or a "rent to buy" scheme where you surrender title to your property to avoid foreclosure, and then rent it back from the company to buy it back later. These schemes are almost always illegal and result in the loss of the home to the scam artists.
The company or "mortgage counselor" claims to be affiliated with an attorney or claims they have attorneys "on-staff." These claims are most often false. make sure that you are dealing directly with a licensed Florida attorney.
Any company that promises to cancel or rescind your loan using legal loopholes or by finding "violations" of REPSA or TILA in your loan documents is highly suspect. These types of claims are almost always cons perpetrated against frightened and desperate homeowners.
Beware of any company that pressures you to hire them right away gives you a high-pressure sales pitch. Any reputable attorney or law firm will not pressure you to make a quick decision.
Avoid any company or lawyer that offers you a money-back guarantee or otherwise guarantees results. Attorneys in Florida are prohibits from offering guarantee from their clients. if someone promises you a guarantee, they are probably not actually affiliated with a licensed Florida lawyer.
Always check any company's rating with the Better Business Bureau.

It is crucial to know that there are honest legal resources available to consumers. The Forrest Law Firm is committed to representing Florida homeowners.

Call The Forrest Law Firm today at 1-800-915-3923 for an informative and comprehensive consultation on how The Forrest Law Firm Foreclosure Defense Plan® can help you.