Beware of Current Mortgage Scams

By Jeanine Bader
April 29, 2009

With the recent downturn in the economy there has been an increase in mortgage fraud and scams.

It is important to be aware of current scams that can take advantage of you and potentially lead you in-to deep financial trouble.

The two main types of scams that are currently being seen are Foreclosure Prevention Schemes and Loan Restructuring Schemes. They are sometimes called "Making Homes Affordable" programs and are geared towards tricking the consumer in to believing that it is the government's program that was developed to help people keep their homes in these troubled times.

Foreclosure Prevention Schemes are targeted against homeowners who are facing the threat of foreclosure on their home. These homeowners are approached by scam artists who promise to help them to keep their house by allowing them to still live in their home while they sign over their home over to the scam artist until they get back on their feet at which time they can buy the home back.

The victim is asked to sign their home over to the fraudster, who then sells the home right out from under them and evicts them and then taking the money and disappearing.

In Loan Restructuring Schemes the fraudster contacts the victim and says they will help them restructure their debt by using equity in their home, even if there is no equity in their home. In most cases the fraudster will collect a fee for the "loan" and will take the money and disappear without helping the victim and leaving them more financially strapped than ever.

It is important to know that in many cases, if it looks too good to be true than it probably is. If you don't know the person you are doing business with, they could be taking advantage of you. The best way to restructure your debt is to talk to a mortgage specialist with Deseret First Credit Union or other qualified specialist with your current lender who will spend time with you and help you find the best way to pay off your debt and keep your home safe and sound.