Scam artists are proliferating, attempting to make money off troubled borrowers interested in taking advantage of President Barack Obama’s foreclosure-prevention plan.
The firms charge fees for what they tell borrowers will be quick and effective negotiations with banks. In most cases, the firms take the home owners’ money – often more than $1,000 – and do nothing.
The Federal Reserve recently issued this advice for people seeking to modify their mortgages:
- Work only with HUD-approved nonprofit counselors. See www.hud.gov
- Don’t agree to pay a fee before you are provided with the promised service.
- Beware of people offering “guaranteed” results.
- Don’t sign blank forms or documents you haven’t read.