Steer Clear of Mortgage Rescue Scams

A bad mortgage situation can quickly get worse if you become a victim of mortgage fraud.

Famous con man Joseph Weil once reflected that the "desire to get something for nothing has been very costly to many people." And he's right. These days, that desire is costing distressed homeowners their homes and their last dollars, too.

Mortgage fraud is the new darling of con artists, who know that a desperate individual is the easiest target. Contrary to what you might think, you don't have to be gullible to get duped by a mortgage rescue or foreclosure rescue scam. These criminals are good at what they do; they know how to manipulate you into feeling comfortable with their services. Fortunately, you can protect yourself from mortgage fraud by following four simple rules:

• Never pay an upfront fee to a mortgage rescue advisor.

• Never sign a mortgage-related contract without legal advice.

• Never trust anyone who offers a quick fix.

• Never give your mortgage payment to anyone but your servicer.

Show me the money

Never pay anyone an upfront fee to fix your mortgage, no matter what type of identification or documentation is presented to you. Scammers can pose as government representatives, and they may have some elaborate documentation to support that identity. The thing is, it's all fake. They'll take your upfront fee and disappear.

Sign on the dotted line

Never sign a mortgage-related contract without getting a legal opinion first. Think of it this way: getting a legal opinion is less expensive than accidentally giving your home away to someone else for free. The scammer will convince you to sign a mortgage rescue contract, but that contract is actually permission for a title transfer. Once the ownership change is recorded, the scammer will evict you from your home.

A variation of this scheme is the rent-to-buy scenario. The con artist convinces you to transfer your home to someone else (i.e., the con artist). The rationale is that the new owner has the credit qualifications necessary to refinance the mortgage on better terms. As part of the deal, the con artist agrees to a rent-to-buy arrangement with you so you can stay in your home, unaffected by the change. Inevitably, the rent-to-buy deal falls apart, and you get evicted from the home you no longer own.

Promises, promises

Never trust anyone who offers a guaranteed, proven, or simple mortgage rescue or foreclosure rescue solution. Also, never trust anyone to make your mortgage payment for you. If you're not sending your payment directly to your servicer, assume your payment is going into someone else's pocket.

Legitimate help

When you need legitimate mortgage help, visit MakingHomeAffordable.gov, HopeNow.com, or call 1-888-995-HOPE. These are free and reputable resources, so take advantage of them-because sometimes, you need to be the one getting something for nothing.