Did you receive a letter from an unknown law firm regarding mortgage recently? Did the letter ask you pay an advance fee for participating in the so called mass litigation to compel the home loan lenders to cut back the monthly payments? If yes, then know that it is a scam. Read on to know more about this.
Beware of fake mortgage lawsuit mails
BBB has issued a warning to the homeowners regarding the fake mortgage lawsuit mails. According to BBB, it is one of the new money making strategies of the mortgage scammers. So, if you have received such a letter and are quite interested to take part in the "mass joinder", then you are going to be the latest victim of the advance fee mortgage scam.
According to BBB, mortgage scammers have sent these kinds of letters to thousands of struggling homeowners already. The letters ask the homeowners to pay an advance fee to participate in national litigation against deceitful mortgage lenders. However, there is no name of the company or its address in the lettJessica Benneter.
To make the letters look genuine, the scammers incorporate the confidential information of the homeowners correctly. The letters clearly includes the name of the mortgage lender, his/her contact details and the total loan amount. The letters asks the homeowners to pay an upfront fee of around $5000 to participate in the mass litigation. The letter states that homeowners participating in the "joinder" will be able to lower the interest rate on the mortgage or reduce the principal amount.
Mortgage experts are advising homeowners to ignore such kind of letters. They are advising homeowners to negotiate with the lenders directly instead of looking for ways to get quick mortgage debt relief. So, if you are going through mortgage debt problems, then you can
calculate a mortgage loan amount through a calculator. Find out your financial resources and think practically about how much you can pay. Thereafter you can negotiate with your lender for an affordable repayment plan. You can also go for mortgage refinancing if you are unable to reach a mutual agreement with your lender.
BBB suggests the following tips to avoid becoming victimized by the mortgage scammers:
Contact your lender before accepting an offer from a third party. The lenders are working in the mortgage industry for several years. They can tell you whether or not a company is a scam or genuine.
Stay away from companies that claim to modify your home loans for an upfront fee. It is not legal.
Keep away from those firms which request you to pay a fee for a forensic loan audits. The reason is, these audits will not be of any help to you. Your loan amount or interest rate will not be slashed.
You should do research on the companies before working with them. You can get the relevant information on the companies from the internet. You can also check the company with BBB before signing any agreement.
Finally, avoid working with the companies which sends you letter to join mass litigation against lender. The reason is, there is a very remote chance of actually getting mortgage debt relief through this.
