You’ve seen the ads on television. They mimic actual news updates and offer help keeping people from facing foreclosure with their rescue plan. There is always small print in the ad, but it is very, very small print.  It says that you may still have to pay your mortgage after their help.

Beware of these foreclosure rescue ads. They are scams. If you need foreclosure assistance, it should be free.

What to watch out for from a company offering assistance

• Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
• Scam artists often target homeowners who are struggling to meet their mortgage commitment or are anxious to sell their homes. Recognize and avoid common scams.
• Assistance from a HUD-approved housing counselor is FREE.
• Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
• Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
• Never make a mortgage payment to anyone other than your mortgage company without their approval.

Real help is available from the government

There is help available for people struggling to make their mortgage payments on time perhaps because their interest rate has increased or they have less income. You can be helped if you are struggling to make your monthly payments because of a second lien.

There is also a program for homeowners who are struggling to pay their mortgage because of unemployment or they are “underwater”, which means they owe more on their mortgage than their home is worth.  There is help for people who have offered a deed-in-lieu of foreclosure.

This help is all available from the US government, through a program called Making Home Affordable (information found at www.MakingHomesAffordable.gov). This program is a critical part of the effort to stabilize the housing market and help struggling homeowners get relief and avoid foreclosure.

Making Homes Affordable includes opportunities for homeowners to modify or refinance their mortgage to make their payments more affordable. The program has recently been expanded to help homeowners who become unemployed or find themselves “underwater.” It also provides options for homeowners who can no longer afford their home and are interested in a short sale or deed-in-lieu of foreclosure.

Remember the Foreclosure Rescue scams we started out with? One of the ways these scams work is by taking money or even the deed to your home.

There is no charge to apply for the Making Homes Affordable Program. If you are struggling to pay your mortgage, you should contact your mortgage servicer—the company to which you pay your mortgage—to determine if you qualify for the program. A HUD-approved housing counselor can also work with you for free to determine if you are eligible and help you apply for the program. The number to call is 1-888-995-HOPE (4673).

For more assistance and information, please feel free to contact our offices at 707-303-3333.  Martin Levy and his team are there to assist.