How to Stay Safe From Mortgage Relief Scams
Staying safe from mortgage relief scams means understanding when lawsuits against your servicer or lender are legitimate and when they are not. Examples of mortgage relief scams include mass joinder lawsuits, forensic loan audits and rent-to-buy schemes. The MARS Rule indicates conditions that mortgage lenders must follow, so if they break any of these rules you know that you potentially have grounds for a lawsuit.
If you are facing foreclosure, do not fall for scams — contact a foreclosure defense lawyer in Florida now. The Law Office of Kelley, Fulton & Kaplan is waiting to take your call today.
Suing Your Mortgage Servicer
There are cases where you should sue your mortgage servicer, first of all, and it’s important to understand these cases. If you do, it’s easy to spot a scam. Sometimes these legitimate lawsuits take the form of individual lawsuits and other times they take the form of class action lawsuits. Talk to an experienced foreclosure attorney West Palm Beach to learn more.
Rent-to-buy schemes are used by scammers attempting to get you to hand over the title to your home. In exchange, you get to remain in your home as a renter and buy it back at a later date. The way these scammers claim this scheme works is that by giving up your title, a borrower can get new financing and prevent foreclosure because he or she has a better credit rating. Unfortunately you will be unable to buy back your home because the terms are too expensive. You are also evicted when the new borrower inevitably defaults on the loan.
Mass Joinder Lawsuits
These lawsuits are propagated by scammers as well. They explain to homeowners that joining others in a large lawsuit against mortgage lenders for some type of restitution like money, stopping their foreclosure or receiving their home’s title. Usually advance fees are required to begin working on a case but the results often don’t measure up. Have you been a victim of a mass joinder lawsuit or any other scam on this page? Contact a foreclosure defense lawyer in Florida now to rectify this wrong.
Forensic Loan Audits
These audits provide distressed homeowners relief in the form of mortgage document audits. Do not trust these companies when they claim that your lender did something wrong such as not following the law, which thereby allows you to cancel your loan, modify it or avoid foreclosure. These audits are scams and do not guarantee results.
MARS stands for Mortgage Assistance Relief Services, and according to the MARS Rule mortgage assistance relief services must not make claims that are unsubstantiated, misleading or false; must not direct the consumer to cease communication with their servicer or lender; must disclose the fee amount and must not collect fees in advance. Up front the company must also disclose that if the customer does not accept the offer they do not need to pay the fee; that the customer can in fact reject or accept the offer from their lender; that the customer can stop conducting business with the company whenever they please; that the lender can not change the loan terms and that the company is not connected with the government.
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