Perhaps you are facing foreclosure. You would like to work out a payment solution you can afford but your lender is not cooperating. Then you receive a call out of the blue from someone offering a loan modification plan.

The caller sounds official and at first, you believe he works with your lender. However, you begin to have suspicions. Is this loan plan a fraudulent offer?

What scam artists claim

The person who suddenly turns up claiming to help you stop foreclosure may try to pass himself off as a consultant or even an attorney who is working with your lender. He will say that you do not need to call the lender yourself, that he will conduct negotiations on your behalf and handle all the details. You do not need to do a thing—except pay an upfront fee. Once you do, you will never see or hear from this person again.

How they get information

People in the real estate fraud business might peruse the public foreclosure notices in newspapers, in public files or even on the internet. They will get your name as the homeowner and follow up with either a call or a letter. Some may also advertise on the radio or TV. Others might have official-looking business cards. However, a genuine offer of foreclosure help must be in writing from your lender. If you accept the offer, your lender must provide information as to the loan changes and total fees.

Next steps

Explore your legal options, first with regard to ensuring your lender is following the appropriate steps regarding your foreclosure, and second, regarding the scammer who contacted you. To begin with, never pay money in advance to anyone claiming to help you with a loan modification plan or any other kind of mortgage relief. As to foreclosure disputes, many can be resolved outside of court, but litigation is always an alternative solution.