They know that people in these situations are vulnerable and often desperate.In addition, bankruptcy will negatively impact your credit score and will remain on your credit report for 10 years. Today’s mortgage rates might be able to help you keep your home by lowering your monthly mortgage payments.

Debt-elimination schemes.Foreclosure scams often involve transfer of ownership of your home to a con artist or another third party.While government-supported mortgage modification and refinancing initiatives are legitimate, the scam artists’ claims are not. So don’t be fooled by these scams offering mortgage rates today that aren’t real.

If someone offers to negotiate a loan modification for you or to stop or delay foreclosure for a fee, carefully check his or her credentials, reputation, and experience, watch out for warning signs of a scam, and always maintain personal contact with your lender and mortgage servicer. Mortgagelendingrates might be able to help you refinance your home loan thus affording your monthly mortgage payments by lowering your payments with a lower mortgage lending rate even though mortgage rates today are higher.

It is important to contact your mortgage lender early to preserve all your options.Private firms frequently compile and sell lists of these foreclosed properties and distressed borrowers.Do not stop making payments on your mortgage based on their claims.This is true — but only temporarily.You do not have to pay anyone to benefit from them.The government is taking actions to stop this fraud, but you also need to protect yourself.

If a document is too complex to understand, seek advice from a lawyer you trust or a legitimate, trusted financial counselor.Protect your rights with a written document or contract signed by the person making the promise.There are legitimate consumer financial counseling agencies that can help you work with your lender.

Contact your lender or mortgage servicer first.Otherwise, a document may obligate you to terms you don’t want or may even convey ownership of your home to someone else.For example, certain lenders–often called “predatory lenders”–target homeowners who have low incomes or credit problems or who are elderly by deceiving them about loan terms or giving them loans they cannot afford to repay.

So be wary of claims offering “government-approved” or “official government” loan modifications.The difference will be that you will no longer own your home.The cost of doing business with high-cost lenders can be excessive and, sometimes, downright abusive.You could lose your home and your money.

The scam artist also may tell you to stop making payments or stop communicating with your lender.Avoid paying up-front fees.Bankruptcy scams.Your mortgage lender can help you find real options to avoid foreclosure.You may have heard that filing bankruptcy will stop a foreclosure.Never sign a document that contains errors or false statements, even if someone promises to correct them.

Never agree to this without getting the advice of your own lawyer, financial advisor, credit counselor, or other independent person you know you can trust.If you’re falling behind on your mortgage, others may know it, too — including con artists and scam artists.Foreclosure “rescue” and refinance fraud.Potential victims are easy to find:

Mortgage lenders publish notices before foreclosing on homes.Scammers may claim to be able to “eliminate” your debt by making illegitimate legal arguments that you are not obligated to pay back your mortgage.After reading these notices, con artists approach their targets in person, by mail, over the telephone, or by e-mail.

This Consumer Advisory, issued by the Office of the Comptroller of the Currency (OCC), describes common scams, suggests ways to protect yourself, provides information on U.Bankruptcy is rarely, if ever, a permanent solution to prevent foreclosure.Do not sign over your deed without consulting a lawyer you select.

Speak with someone in the loss mitigation department for mortgage modification options and other alternatives to foreclosure.By signing over your deed, you lose the rights to your home and any equity built up in the home — and you are still obligated to pay the mortgage.The scam artist offers to act as an intermediary between you and your lender to negotiate a repayment plan or loan modification and may even “guarantee” to save your home from foreclosure.

If payments are not made on the mortgage, your lender has the right to foreclose, and the foreclosure and any other problems will appear on your credit report.How to Protect Yourself from Mortgage Modification and Foreclosure Avoidance Scams Always proceed with caution when dealing with anyone offering to help you modify your mortgage or avoid foreclosure.

You also should consider contacting qualified and approved credit counselors.They often advertise their services on television, radio, or the Web, and in newspapers, describing themselves as “foreclosure consultants” or “mortgage consultants,” offering “foreclosure prevention” or “foreclosure rescue” services.All you need to do is contact your lender or loan servicer.

Your lender will be able to tell you whether you qualify for any government initiatives to prevent foreclosure.Borrowing from an unscrupulous lender, especially one who offers you a high-cost loan using your home as security, is risky business.In reality, the scammer may pocket your money and leave you in worse shape on your loan.

Oral promises and agreements relating to your home are usually not legally binding.Common Types of Scams Here are some examples of scams related to mortgage modification and foreclosure avoidance.And they are only too happy to take advantage of homeowners who want to save their homes.Keep copies of all contracts that you sign.

Get promises in writing.Do not trust anyone to make mortgage payments for you, and do not stop making your payments.Scams that promise to “rescue” you from foreclosure are popping up at an alarming rate nationwide, and you need to protect yourself and your home.Fake “government” modification programs.

Make sure you are dealing with a legitimate organization.While some legitimate housing counselors will charge small fees for their services, do not pay fees to anyone before receiving any services.Keep in mind that you do not have to pay to benefit from these government programs.Remember that your mortgage lender should be the starting point for finding options to avoid foreclosure.

Don’t follow that advice.Eventually, you must start paying your mortgage lender, or the lender will be able to foreclose.10 warning signs of a mortgage modification scam.These scammers will provide you with inaccurate claims about applicable laws and finance, such as that “secret laws” can be used to eliminate debt or that banks do not have the authority to lend money.Remember that you do not need a third party to work with your lender — any such party should make the process easier, not harder and more expensive.

Read and understand every document you sign.Do not rely on an oral explanation of a document you are signing — make sure that you read and understand what the document actually says.But not all loans and lenders are the same–you should shop around.Know what you are signing.The scam artist may use such terms as “federal,” “TARP,” or other words or acronyms related to official.

These tactics are designed to fool you into thinking the scam artist is somehow approved by, or affiliated with, the government.Make all mortgage payments directly to your lender or to the mortgage servicer.Unscrupulous people may claim to be affiliated with, or approved by, the government or may ask you to pay high up-front fees to qualify for government mortgage modification programs.

Again, never sign anything you don’t understand.The scam artist’s name or Web site may be very similar to those of government agencies.Before you sign on the line, Remember that transferring your title does not change your payment obligations — you will still owe your mortgage debt.

You may be told to make mortgage payments to the scammer directly — along with significant, up-front fees — and be told that the scammer will forward the payments to your lender.Filing bankruptcy brings an “automatic stay” into effect that stops any collection and foreclosure while the bankruptcy court administers the case.Never sign documents with blank spaces that can be filled in later.

Facing a foreclosure or short sale on your home is a devastating experience to go through. Many people were talked into getting a risky mortgage or enticed by a really low mortgage rate or low refinance rates because many others just wanted a larger home than they could afford and streched their payment by using a mortgage calculator to figure out how much they can pay every month. Whatever the reason is why you can’t afford your home anymore going to the foreclosure process isn’t easy.

There is help available for you by different government programs or community organizations. One thing you should do is obtain legal counsel so they can help you through the process. If you can’t afford a lawyer Legal search for free legal programs that can help.

I recently read a mortgage is only a contract not a moral obligation. Although some people belive morally they shouldn’t just walk away from their home. Many people don’t have a choice and can’t afford to pay their mortgage.

When you leave your home the next big decision to make is where are you going to live? Many people stay with family or friends. Many others start renting a home, apartment or condo. Others buy another home before their current home goes through a foreclosure or short sale. If you are one of the lucky people who can afford another home 30 year conforming mortgage rates are averaging 4.82 percent according to the interest rate website monitorbankrates.com.

Next week we will list Utah foreclosure legal information and a list of resources you can use to help you.