Mortgage Settlement Scams

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What Is the National Mortgage Settlement?

The National Mortgage Settlement, also known as the $25 Billion National Mortgage Settlement, was announced early in 2012. It involves five of the largest mortgage services agreeing to pay a total of $25 billion in order to settle or avoid further disputes related to the mortgage and foreclosure crisis. 

The settlement money is estimated to go to some 2 million current and former homeowners, for assistance in the form of principal reductions, mortgage relief, etc. Eligibility for the settlement money may vary, but persons who believe they are eligible should directly contact their current or former mortgage servicer.

What Are Some Recent Mortgage Settlement Scams?

After learning about the recent National Mortgage Settlement announcement, countless scammers and fraudsters have begun targeting homeowners and former property owners. Homeowners and those affected by the Mortgage Settlement should be aware of the following forms of mortgage settlement scams:

Overall, you should be wary of any parties or persons who simply aren’t the bank or mortgage company you work with. The mortgage settlement will generally occur through direct interactions between eligible parties and the bank/mortgage company.  Mortgage settlement scams are similar to other types of scams such as sweepstake scams.

Note that the warnings listed above don’t just apply to the National Mortgage Settlement announcement, but can generally apply to other settlement or payout arrangements as well.

Should I Hire a Lawyer If I Have Been Victim to a Mortgage Settlement Scam?

If you believe that you have been a victim to a mortgage settlement scam, you may wish to contact a lawyer for advice or representation in court. You may also wish to contact a lawyer for advice regarding your eligibility for a settlement payout. An experienced lawyer in your area can provide you with much-needed assistance regarding mortgages and foreclosures.

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Last Modified: 11-20-2013 12:24 PM PST

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