"PAY OFF YOUR MORTGAGE" SCAMS

Every time you go online you see a big headline like, "Government Will Pay Off Your Mortgage" or "Alabama Homeowners Can Get Their Mortgages Paid."

This sounds too good to be true, and of course, it is. Nobody is paying off mortgages for free in Alabama or anywhere else. What happens when you answer one of these scam ads?

"If somebody would pay off your mortgage for you, then nobody would have a mortgage." The concept is ridiculous.

The more "legitimate" scams will eventually offer to refinance your home, i.e., pay off your old mortgage and write you a new one. Not what their ad says, of course. And, of course, it doesn't eliminate your mortgage!

Other predators are more dangerous.

Once they’ve made contact, the fraudsters will offer, for a fee, to negotiate with a mortgage lender to reduce or delay payments and stave off foreclosure. They may try to talk you into making house payments directly to them while they get things straightened out, or advise you to stop making payments period, on the pretext that it will get you a better deal from your lender or the loan servicer managing your account. They’ll “guarantee” results, or your money back, perhaps touting a special relationship with banks that they’ll use on your behalf.

When they’ve stolen as much as they think they can get away with, the Federal Trade Commission (FTC) warns, they’ll stop returning calls and just vanish. All your money is gone; you are still stuck with your mortgage (plus some missing payments, probably).

Do not sign any papers unless they are approved by your own attorney. Many predators hide language deep inside documents which actually transfers all your home's equity to them. This scam is called "equity skimming." I call it theft.

WARNING SIGNS OF A FRAUD

• A mortgage relief service guarantees that it can prevent a foreclosure or get your loan modified, regardless of your financial situation.

• The company demands an upfront fee for help renegotiating your loan. That’s illegal under the federal Mortgage Assistance Relief Services (MARS) Rule.

• You’re told not to contact your mortgage lender or servicer, housing counselor or your own attorney.

• A promised loan modification is characterized as “government-approved.” Scammers often pretend to be affiliated with government agencies.