Mortgage Assistance and Your Rights

Mortgage Assistance And Your Rights

Scammers target desperate homeowners looking to avoid foreclosure and stay in their homes. These scammers promise they’ll get changes to your loan so you can keep your home. But they want you to pay them an upfront fee before giving you any services or getting any results. Don’t do it. It’s illegal for a company to charge you upfront for promises to help you get relief on paying your mortgage. If you’re working with a lawyer, make sure they’re licensed in the state where you live and are reputable.

If a company offering help with your mortgage debt doesn't follow these rules, it could be trying to scam you. Here’s what to know about your rights.

• Don't pay any money until the company delivers the results you want. The Mortgage Assistance Relief Services (MARS) Rule says it's illegal for a company to charge you a penny until it's given you a written offer for a loan modification or other relief from your lender — and you accept the offer.

• The company must disclose key information to you. If you decide to accept your lender’s offer, the company must

  • give you a document from your lender showing the changes to your loan

  • clearly tell you the total fee the company will charge you for its services

  • warn you that you could lose your home — and damage your credit — if you stop paying your mortgage

• The company’s ads and telemarketing pitches must clearly say

  • they’re not associated with the government, and their services haven’t been approved by the government or your lender

  • your lender may not agree to change your loan

• The company can’t tell you to stop talking to your lender. You always have the right to contact your lender directly to see whether you have other options. Companies that tell you to stop communicating with your lender are breaking the law.

This article is provided by the Federal Trade Commission (FTC). For more information, visit consumer.ftc.gov.