FTC Issues Statement Warning Consumers Against Mortgage Relief Scams
Best Practices
FTC Issues Statement Warning Consumers Against Mortgage Relief Scams
January 13, 2020 9:38 AM
Navindra Persaud

The Federal Trade Commission is warning consumers of scams that are targeting folks who are facing trouble with their mortgages. To help weed through possible scammers, the FTC revealed some tips on what to look out for, should you be approached by a mortgage relief company.

The FTC revealed that companies that offer mortgage relief are not allowed to collect fees from the homeowner until an offer of relief has been given and accepted. Though, a recent report from OKCFox also notes that the FTC revealed some of the statements to watch out for when being approached by scammers.

These phrases include:

"Stop foreclosure now!"

"Get a loan modification!"

"Over 90% of our customers get results."

"We have special relationships with banks that can speed up the approval process."

"100% money back guarantee."

"Keep your home. We know your home is scheduled to be sold. No problem!"

The FTC revealed that companies asking for an upfront fee can be a dead giveaway of a scam. It also notes phony counseling, forensic audit, rent-to-buy schemes and bait-and-switch scams are all possible scams to keep an eye out for.

To learn more about mortgage relief scams that are targeting consumers, click here.

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