04/16/2020
The Department of Real Estate issued a News Release this morning relating to the Department’s newest Consumer Alert titled, “Fraud Warnings for California Homeowners in Financial Distress.”
The District Attorney recommends the following tips to avoid becoming a victim of this type of fraud:
• Never pay any person or business for mortgage or forbearance assistance, including the negotiation of a new, lower mortgage payment. It is unlawful for any entity to charge an advance fee to negotiate on a borrower’s behalf with a lender. Borrowers should contact their lender directly to discuss forbearance options, and never go through a third party.
• Never sign a deed that transfers any portion of home ownership to another person or entity as part of a mortgage assistance or forbearance scheme.
• Never make any portion of a mortgage payment to anyone other than your lender. Such payments are never passed on to the lender and this often unnecessarily triggers foreclosure proceedings that otherwise may never have commenced.
• Never stop making mortgage payments to your lender on the advice of a mortgage or forbearance “expert.”
• Be wary of mailed or telephonic advertisements promising mortgage or forbearance assistance. Legitimate assistance will not come to a borrower, it must instead be sought out.
• Homeowners struggling to pay their mortgage payment should contact their lender directly to learn what assistance programs may be available.
