How can I protect against deed thefts and loan scams?

If you are behind on your mortgage or property taxes, beware of scammers asking you for money up front to get you a loan modification. There are free housing counseling agencies who provide that help, and New York law prohibits charging in advance for help with loan modifications. Many scammers will try to trick you into signing papers to transfer ownership of your property to them or others, telling you that they are going to help you save their home. Never sign any papers without seeking advice from a lawyer that you have contacted on your own. (Sometimes scammers will ask you to sign documents in the presence of someone claiming to be your own lawyer.)

Below are a few quick tips to protect yourself:

• DON’T agree to upfront fees. These are almost always illegal. Loan modification companies should only be paid after you’ve received a modification.
• DON’T trust a loan modification company that “guarantees” a modification. Banks don’t always have to modify your mortgage, but free and trustworthy services are available to help you apply for a modification that could get you a lower monthly payment.
• DON’T follow advice to stop making your mortgage payments or to default when you are current.
• DON’T send your mortgage payment to anyone other than the company that sends you your mortgage statements.
• DON’T sign any papers turning over your deed or transfer ownership of your home to a loan modification company.
• DON’T agree to sell any part of a home you inherited without first seeking advice from a lawyer that you know and trust.

Resources:

• Look for a HUD-approved housing counselor or a legal services organization.

• Legal Services NYC assists homeowners with answers, legal representation, and other services to prevent home loss. There is no fee for our services. 

For free legal help, call Legal Services NYC at 917-661-4500 Monday through Friday from 9:30 a.m. to 4 p.m. Learn more about our intake process here.

* The information does not constitute legal advice. You should always consult an attorney regarding your matter. Legal help subject to capacity and location.