As we know from the last blog in this series, How Can I Spot and Avoid Foreclosure Scams? , foreclosure scams take all shapes and sizes and are constantly evolving to evade the authorities. However, they all have one thing in common: the perpetrators are criminals who specifically target honest homeowners that are trying to reestablish their lives and honor their mortgage obligations. Like other predators, their victims experience a roller coaster of emotions ranging from embarrassment and fear to anger and frustration. Too often, these feelings prevent homeowners from reporting the fraud and seeking the help they deserve. Second guessing the trust you placed in these seemingly reputable companies is common, but unproductive. Instead, homeowners need to work quickly to limit the damage these scammers caused.
The first thing you must do is report the crime. This not only helps you establish a timeline of what happened to protect yourself and possibly recover your funds, but it also makes sure that the authorities can begin an investigation and save future targets from being victimized. In Ohio, you should report the misconduct you experienced to the Ohio Attorney General’s office, the Better Business Bureau, the Federal Trade Commission, and the Consumer Financial Protection Bureau. You may also wish to file a police report with your local precinct. Click on links in previous sentence to report fraud. In Ohio you can tell the Ohio Attorney General’s Office by calling 1-800-282-0515.
Secondly, you should seek out a professional (and HUD approved Counselor) who may be able to actually deliver of the scammer’s false promises to work with your mortgage company. You can also call 1-800-569-4287 to speak with someone who will help you find a HUD approved counselor in your area. While a successful outcome can never be guaranteed, the counselors are in the best position to help you avoid foreclosure.
Consulting with a lawyer can help you protect yourself. An attorney understands the legal aspects and can help you navigate the system. If you cannot afford an attorney Legal Aid can provide you with one or call 866-LAW-OHIO.
Document the fraud by keeping original documents received with your notes of other details. Also keep a log of telephone calls or in-person contact and recordings of conversations if possible. Record the facts and try to avoid using emotional descriptions. Include dates and name of the person you spoke with. Your documentation will assist authorities and could help others from being victims.
Stop-payment is an option if you wrote a check to someone and then realized it was a scam. Contact your banks to attempt to stop-payment on the check. Your bank will be able to tell you what the fee is to stop-payment.
Be sure to notify your mortgage company as soon as possible.
Check your credit report at least yearly, but if you have problems with fraud it is a good idea to check again. You can get a free credit report once a year or call 1-877-322-8228. In addition Equifax, Experian, and TransUnion are the three major credit bureaus you could contact.
You may also wish to sign up for the Consumer Advocate e-newsletter from the Ohio Attorney General’s Office. This publication can help you be more aware of scams occurring in Ohio so you can prevent future fraud. Remember if it sounds too good to be true, it probably is. Don’t fall for scams. You can best prevent fraud from reoccurring by being aware of the warning signs and investigating suspicious activity.
