Have you fallen delinquent on your home loan? Are you researching options on how to work with your lender? Confused about the programs that are available?
During this financial crisis brought about by the pandemic many homeowners have fallen delinquent on their mortgages. Maybe you are one of them. The Consumer Financial Protection Bureau (CFPB) reports that during this already stressful time, scammers are taking advantage of homeowners through mortgage relief scams. These entities offer, for a fee, to help or guarantee that they can stop your foreclosure. Beware of these programs.
The CFPB notes these red flags that can help you spot and avoid mortgage relief scams:
- You're asked to pay up front for help.
- The company guarantees it will get the terms of your mortgage changed.
- The company guarantees you won't lose your home.
- You're instructed to send your payment to someone other than your mortgage company or servicer.
- You're told to stop paying your mortgage.
- The company says they're affiliated with the government or uses a logo that looks like a government seal but is slightly different.
Knowing your rights under the CARES Act and guidance from the US Department of Housing and Urban Development also can help you avoid mortgage relief scams. If you experience financial hardship due to the COVID-19 pandemic, you may have a right to temporarily pause or reduce your monthly mortgage payments through a forbearance. Servicers also may not be allowed to foreclose on your home. For more information on COVID housing protections and important deadlines, visit consumerfinance.gov/housing.
Please also consider discussing your situation with an experienced bankruptcy attorney. If you are unable to work through a loan modification with your lender, a Chapter 13 bankruptcy maybe beneficial to restructure your debt. Give us a call today to discuss your options.
*This post is reprinted with information obtained from the Consumer Financial Protection Bureau (https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/)