The Federal Reserve created this 30-second advertisement to direct consumers to free resources on avoiding foreclosure scams at www.federalreserve.gov. These include the “5 Tips for Avoiding Foreclosure Scams” and other mortgage foreclosure resources.
These 5 tips will help consumers select a reputable counselor and avoid fraudulent foreclosure scams.
1. Work only with a non-profit HUD-approved counselor. For a list of certified counselors visit www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm or call 877-HUD-1515 (877-483-1515). If the name of the organization you are working with isn’t on the list, then switch to one that is.
2. Don’t pay an arm and a leg. Most housing counselors provide no- or low-cost counseling services. You should not have to pay hundreds, or thousands, of dollars for assistance.
3. Be wary of “guarantees.” No one can ensure you good results.
4. Know what you are signing. Don’t let a counselor pressure you into signing paperwork you haven’t had a chance to read thoroughly or that you don’t understand.
5. If it sounds too good to be true, it probably is.