Monday, April 13, 2009

Watch Out for Foreclosure Rescue Scams

The California Attorney General's website has a short but good list of things to watch out for in foreclosure rescue scams. I am increasingly approached by new clients who have hung all of their hopes on a mortgage modification that is unrealistic or that has been going on for months and months with no results. Another mortgage modification myth is that you will be able to get a principal reduction on your mortgage if your home is underwater. This type of mortgage modification is very rare - although it does appear that some of the borrowers in the Countrywide settlement with the California Attorney General are eligible for principal reductions. Just remember, if it sounds too good to be true, it probably is. Please educate yourself before giving any money to anyone promising you to rescue your home from foreclosure.

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