Common mortgage assistance relief scams

On Behalf of | Feb 11, 2020 | Consumer Protection |

People in Wisconsin make their lives in the houses that the own and being able to keep these homes is important. However, sometimes for a variety of different reasons people may fall behind on payments and face the possibility of foreclosure. This can be a very scary situation and leave people in somewhat desperate situations. This puts them in a vulnerable situation and unfortunately there are many people out there willing to take advantage of this vulnerability.

They can do this through mortgage assistance relief scams. These scams usually make various promises that they can help those facing foreclosure keep their homes for a certain fee. One common scam is stating that they can help negotiate a deal with the bank to reduce mortgage payments or save your home in other ways. Another scam is people saying they can audit the mortgage documents to find errors which could result in cancelling the loan or other types of relief.

Others involve people stating that they can help save the home by transferring the deed to them and then may say that the owner can rent the home and buy it later or say they will rent the home for them and give the owner the proceeds from the rent. Another form of this is people stating that the owner is simply signing documents for another loan allowing them to pay the mortgage, but the documents, unbeknownst to the owner, also transfers title to the other people.

These scams are illegal and the law in Wisconsin actually prohibits these types of companies from collecting any fees from people until they fulfill the promises they make in the written contract. The companies must also make a number of disclosures regarding their identity. If the companies do not abide by these rules, they could be scamming a person. It is important that people are protected from these scams and consulting with an experienced attorney could be helpful.