3 Mortgage Rescue Rip-off Tip-Offs

By on

With thousands of Americans now scrambling for a mortgage modification to forestall foreclosure, the scam artists are coming out of the woodwork. But avoiding a rip-off is easy… if you know what to look for.

“I was transitioning from one company to the next company and within a couple of months of that transition, the new company folded. So I fell behind mortgage payments”
-Miriam Terry, Homeowner

Miriam Terry was in the same position many Americans find themselves in today: facing foreclosure. And like many of her peers, her situation went from bad to worse when she became a victim of a rescue rip-off.

“They found Miriam. They called…they solicited her. And they told her they could refinance her and get her out of her troubled loan into a better loan.”
-Michael Sichenzia, Investigator

But what they did instead was fool Miriam into signing her house over to them. Then they borrowed against it and walked away with the money. They literally stole her house.

So how do you avoid becoming a victim? Here are three tip-offs to rescue rip-offs. First, don’t ever pay an up-front fee. Reputable people normally don’t charge them. Second, don’t ever, ever sign away your title…or anything else you haven’t thoroughly read and understood. And finally, be wary of fast talk. Loan modifications aren’t that complicated…you should easily understand everything that’s happening.

The simplest way to avoid a rip-off? Don’t answer ads. Instead, start with a non-profit housing counselor. You’ll find a list of them at the Housing and Urban Development website.

Bottom line? There’s a special place in hell for people who kick others while they’re down. But until they get there, don’t help them make money. Listen to your inner voice. And if you’re in doubt, you throw them out.

Sign up for our free newsletter

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait? Click here to sign up now.

Check out our hottest deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,046 more deals!

Comments & discussion

We welcome your opinions, but let’s keep it civil. Like many businesses, we reserve the right to refuse service to anyone. In our case, that means those who communicate by name-calling, racism, using words designed to hurt others or generally acting like an uninformed bully. Also, comments that include links to email addresses or commercial websites typically aren't posted. This isn't a place to advertise your business.

  • CashGiftsDirect

    The best video I have seen yet. I like the last line about not helping them until they get there. That was a funny line. This was a great topic overall.

  • CashGiftsDirect

    The best video I have seen yet. I like the last line about not helping them until they get there. That was a funny line. This was a great topic overall.